The Scotts Miracle-Gro Co. (SMG) is seeing share price momentum after delivering record fiscal first-quarter sales. Analysts have been bullish on SMG’s earnings projections, raising fiscal 2009 estimates by 11% over the past 2 months.

Company Description

Scotts Miracle-Gro is the world’s largest marketer of branded consumer products for lawn and garden care, and professional horticulture products.

In the U.S., the company operates Scotts LawnService(R), the second largest residential lawn care service business. In Europe, SMG’s brands include Weedol(R), Pathclear(R), Evergreen(R), Levington(R), Miracle-Gro(R), KB(R), Fertiligene(R) and Substral(R).

Record Results

SMG is seeing share price momentum after delivering record fiscal first-quarter sales. The company posted record first-quarter sales of $318 million, which came in 3% above the year-prior level. The company noted that the improvement was led by a 9% jump n its Global Consumer business and 5% growth in Global Professional.

“Sales growth, combined with improved gross margins, gave us an encouraging start to the fiscal year,” said Jim Hagedorn, chairman and chief executive officer. “While it’s early in the season, we are pleased that consumers in warm weather markets remain engaged in the category, which gives us continued confidence as we look toward the break of the season nationwide.”

The company also reported a seasonal net loss, which was an adjusted 81 cents, compared to last year’s loss of 89 cents. The result came in 13% ahead of analysts’ estimates.

Higher Forecasts

Scotts Miracle-Gro upped its full-year outlook on an adjusted basis to a range of $2.10 to $2.30 per share, adding that it expects to generate free cash flow of $150 million to $170 million for the year, growth of up to 20% from 2008.

“Strong retailer support, combined with our new product offerings and aggressive marketing plans, give us positive momentum as we enter the season,” Hagedorn said. “Our success in 2009, however, will be based on keeping consumers engaged in lawn and garden – a category that has historically fared well in economic downturns.”

Analysts have also been bullish on SMG’s earnings projections, raising fiscal 2009 estimates by 11% over the past 2 months to $2.27 per share.

The Chart

As indicated on the one-month chart below, SMG bounced higher after turning in a robust first quarter. Shares are trading close to the current 52-week high, on path to establish a new one.

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