UPDATE: Scotts Miracle-Gro (SMG) Misses Q2 EPS by 12c, Miss on Revenues; Receives $250M Binding Offer for European and Australian Consumer Operations

Scotts Miracle-Gro (NYSE: SMG) reported Q2 EPS of $2.78, $0.12 worse than the analyst estimate of $2.90. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.28 billion.

Highlights:

• Q2 GAAP EPS of $2.73 versus $3.64; Non-GAAP Adjusted EPS $2.78 versus $3.00
• Q2 Sales of $1.20 billion compared with $1.24 billion as weather impacts March results
• Consumer purchases at major U.S. retailers nearly flat YTD entering May
• Comparative sales of hydroponic products increase 22% in Q2; up 13% year-to-date
• Pending sale of International business in approximately $250 million deal

Separately, the Company announced it has received a binding and irrevocable offer for its European and Australian consumer operations from Exponent Private Equity LLP. The proposed transaction, valued at approximately $250 million (USD), is expected to close during the Company’s fiscal fourth quarter, and is subject to prior consultation with the works councils, employee representative bodies and regulatory approval. Depending on the timing of closure, the transaction could result in dilution by up to $0.20 per share in fiscal 2017

(Update includes information on proposed transaction.)

For earnings history and earnings-related data on Scotts Miracle-Gro (SMG) click here.

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