Shares of Scotts Miracle-Gro Company (SMG) plunged 5.32% in pre-market trading on Wednesday, despite reporting better-than-expected third-quarter earnings. The sharp decline comes as the company's revenue fell short of analyst estimates, overshadowing its earnings beat and improved profitability.

For the fiscal third quarter, Scotts Miracle-Gro reported adjusted earnings per share of $2.59, surpassing the analyst consensus of $2.27. This represents a 12.12% increase from $2.31 per share in the same period last year. However, the company's quarterly sales of $1.188 billion missed analyst expectations of $1.228 billion, marking a 1.16% decrease from the previous year's $1.202 billion.

Despite the mixed results, Scotts Miracle-Gro reaffirmed its full-year non-GAAP fiscal 2025 guidance, projecting adjusted earnings per share of at least $3.50. The company also reported improvements in gross margin and a 1% increase in U.S. Consumer net sales. However, investors appear to be focusing on the revenue miss and overall sales decline, leading to the significant stock price drop in pre-market trading. As the market digests this earnings report, it remains to be seen how Scotts Miracle-Gro's stock will perform throughout the trading session.