Analyst Note| Seth Goldstein, CFA |
On June 1, Scotts Miracle-Gro increased its 2021 guidance due to higher sales growth in both the U.S. consumer and Hawthorne segments versus previous guidance. Management expects the higher sales to flow to the bottom line, increasing adjusted EPS guidance to a range of $9 to $9.30 per share up from $8.60 to $9. In updating our model to incorporate Scotts' fiscal second-quarter earnings, we had increased our sales forecasts above previous guidance for both the U.S. consumer and Hawthorne segments. As a result, our fiscal 2021 adjusted earnings per share forecast of $9.23 is already above the midpoint of management's updated guidance range.