Scotts Miracle-Gro Profits Rise; Increases Dividend (SMG)
On Tuesday, lawn and garden product company Scotts Miracle-Gro Co (SMG) released its third quarter results, which came in above analysts’ estimates. The company also reported that it has raised its quarterly dividend by 35%.
The Marysville, OH-based company posted third quarter earnings of $148.2 million, or $2.37 per share, up from $93.3 million, or $1.50 per share, a year ago. Excluding special items, earnings were $2.46 per share, above the average analyst estimate of $2.43 per share.
Total revenue for the quarter was $1.15 million, up 9% from $1.05 billion last year. On average, analysts expected to see revenue of $1.17 billion.
Looking ahead, the company expects to see FY2013 earnings between $2.50 and $2.75 per share. Analysts expect to see earnings of $2.53 per share.
Additionally, the company announced that its board has authorized a 35% increase in the company’s dividend to $0.4375 per share. The dividend will be paid on September 10 to shareholders of record on August 27.
Scotts Miracle-Gro shares were mostly flat during premarket trading Tuesday. The stock is up 19% YTD.
The Bottom Line
Shares of Scotts Miracle-Gro Co (SMG) have a 3.33% yield based on Monday’s closing price of $52.48 and the company’s updated annualized dividend payout of $1.75 per share.
Scotts Miracle-Gro Co (SMG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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