NEW YORK (AP) — Shares of Scotts Miracle-Gro Co. slid in pre-market trading Wednesday as investors reacted to the fertilizer maker's reduction of its full year earnings prediction.
The Marysville, Ohio company now expects earnings of $3.10 to $3.20 per share, down from $3.60 to $3.70 per share. Analysts polled by FactSet had forecast earnings of $3.66 per share for the 2011 fiscal year, which ends Sept. 30.
The company, which blamed bad weather for the lower forecast, still expects revenue to grow between 4 percent and 6 percent over last year. Scotts reported revenue of $3.14 billion in 2010.
Jefferies & Co. analyst Douglas M. Lane said in a note to clients he doesn't think the lower expectations were a surprise to investors, considering the stock was already down about 11 percent since late May. But the magnitude of the impact was not expected, he said, which will lead to some near-term declines in shares.
Scotts plans to report its third-quarter results Aug. 2.
Its shares dropped $3.04, or 5.8 percent, to $49.30 before the market opened Wednesday.
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