Scotts Miracle-Gro Co. shares (NYS:SMG) rose more than 5% in premarket trade Wednesday, after the maker of hydroponic growing products beat earnings estimates for the second quarter and raised its guidance. Marysville, Ohio-based Scotts said it had net income of $201.7 million, or $3.56 a share, in the second quarter, up from $82.9 million, or $1.47 a share, in the year-earlier period. Adjusted per-share earnings came to $3.11, ahead of the $2.74 FactSet consensus. Sales climbed to $1.170 billion from $994.6 billion, also ahead of the $1.070 billion FactSet consensus. "..Nearly every aspect of our business is exceeding our expectations," Chief Executive Jim Hagedorn said in a statement. The company raised its full-year guidance for the second time this fiscal year and now expects adjusted earnings in a range of $4.35 to $4.50 per share on projected sales growth of 16 to 17 percent. The company said it has amended an agreement with Monsanto, which is acquiring four Roundup-branded product lines outside the non-selective weed control category, as well as the right to use the Roundup brand (previously licensed to Scotts by Monsanto) on those and future product lines outside the non-selective weed control category, for $112 million. "ScottsMiracle-Gro will act as marketing agent for these brand extension product lines and the companies will equally share future profits, which are expected to be approximately $15 million in fiscal 2019," said the company. Shares have gained 61% in 2019, while the S&P 500 (S&P:SPX) has gained 20%.
July 31, 2019, 7:45 a.m. EDT