Why Shares of Scotts Miracle-Gro Fell 16.5% in June
Failing to flourish in the first five months of 2022, shares of Scotts Miracle-Gro (NYSE: SMG), the lawn care and pest control purveyor, had fallen more than 41%. And the downward trend didn't stop in June. According to data from S&P Global Market Intelligence, Scotts Miracle-Gro's stock plunged 16.5% last month, nearly doubling the S&P 500's decline of 8.4%.
In addition to the company's downward revision of its 2022 guidance, a flood of bearish commentary on the stock from Wall Street drowned investors' hopes for the stock.
On June 8, management revealed its new -- more dour -- expectations for 2022, which included lower expectations on both the top and bottom lines. Initially, the company had forecast overall sales growth of flat to 3% 2022 compared to 2021. While management expected U.S. sales to be flat or decline 3%, it believed that Hawthorne, the cannabis-related subsidiary, would drive year-over-year growth about 8% to 12%. With regard to profitability, management had originally forecast 2022 adjusted earnings per share of $8.50 to $8.90.
Source Fool.com
