Scotts Miracle-Gro Co(NYSE:SMG), which makes lawn and garden products, reported a fall in its third quarter income and missed analyst forecast due to poor demand in its soil and fertilisers business.
Net income for the third quarter fell to $93.3 million, or $1.50 per share, from $111.6 million, or $1.69 per share, a year ago. Revenue was mostly flat at $1.06 billion.
Adjusted net income from continuing operations was $1.60 per share. Analysts on average expected Scotts to earn $1.90 a share on revenue of $1.11 billion.
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Growth in fiscal 2013 is likely to be slow, the company has warned with consumer engagement showing a declining trend from May and June onwards.
Sales of its international business, from which it derived about 18 percent of its revenues in 2011, fell 17 percent in the quarter.
Scotts Miracle-Gro sells grass seeds, fertilisers and gardening tools. Some of its international brands are Miracle-Gro, Evergreen, Fertiligene and Celaflor.
In the quarter it also saw slimmer margins and the company is planning to raise its prices and reduce its costs to improve margins.
Third-quarter adjusted gross margin fell to 34.5 percent from 37.9 percent a year ago, primarily hurt by higher freight and commodity costs.
Shares of the Marysville, Ohio-based company, which have fallen about 12 percent this year, closed at $41.39 on the New York Stock Exchange on Thursday. On Friday they were trading up 2.2 percent at $42.30.
Graphics chip maker NVIDIA Corporation(NASDAQ:NVDA) reported a forecast-beating, second quarter results sending its shares up more than 4 percent on Thursday.
Nvidia made $119 million, or 19 cents per share, for the quarter that ended July 20 compared with $151.6 million, or 25 cents per share, a year ago. It earned 27 cents per share after adjusting for a number of special items.
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Revenue rose to $1.04 billion from $1.01 billion. Operating expenses increased by 15 percent, to $401.1 million.
Nvidia expects revenue of $1.15 billion to $1.25 billion in its third quarter. Analysts forecast $1.09 billion.
The company said its sales were a result of the strong demand for its products from the tablets segments.