Scotts Miracle-Gro & Scotts Miracle-Gro Slumped On Earnings (SMG, EA)
Scotts Miracle-Gro Co (NYSE:SMG) shares slumped in the pre-market session as the company reported a steep decline in its second-quarter profit on lower margin due to rise in input costs.
The company said that it earned $127.2 million, or $2.05 a share, down from a prior-year profit of $177.6 million, or $2.63 a share. On an adjusted basis, the company would have earned $2.15 a share, missing analysts’ estimates by 9 cents.
Revenue during the quarter rose 3.90% to $1.17 billion, missing analysts’ forecast of $1.20 billion. Gross margin fell to 39.4% from 41%.
Global consumer segment sales rose 3.2%, but operating profit from continuing operations in the segment fell 8%, reflecting planned increases in advertising spending and lower margins related to higher product costs. Scotts LawnService posted a roughly 10% increase in revenue, and its operating loss narrowed.
Shares of the company are down 8.20% to $50.50 in pre-market trading.
Electronic Arts Inc. (NASDAQ:EA) reported a higher first quarter profit late Monday, however, the company provided first quarter outlook that missed analysts’ forecast.
For the full year, the company expects to earn $1.05 to $1.20 per share for the year on revenue of $4.3 billion, missing analysts’ target of $1.12 on revenue of $4.49 billion.
For the current quarter though, Electronic Arts sees a non-GAAP loss of 40 to 45 cents a share on revenue of $500 million, much worse than Wall Street’s expectations for a loss of 33 cents per share on revenue of $577 million.
In the first quarter, the company reported earnings of 17 cents per share on $977 million in revenue for its fiscal fourth quarter ended in March, slightly ahead of analysts’ estimates of 16 cents per share on $957.9 million in revenue.
Interim Chief Financial Officer Ken Barker said in an interview that EA is pleased with the stability of the game, but it wants to boost the subscriber base with the release of two expansion packs this quarter that deliver players more content.
Shares of EA are down over 5%.