Tractor Supply Earnings: Here’s Why Investors are Not Excited Now

Tractor Supply Company (NASDAQ:TSCO) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.51%.

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Tractor Supply Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.73% to $0.62 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 6.41% to $1.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tractor Supply Company reported adjusted EPS income of $0.62 per share. By that measure, the company missed the mean analyst estimate of $0.62. It missed the average revenue estimate of $1.1 billion.

Quoting Management: Greg Sandfort, President and Chief Executive Officer, stated, “We are delighted with our ability to again deliver double-digit EPS growth on top of very strong growth during the prior year’s first quarter. While weather was not as favorable as a year ago, we planned accordingly and are pleased to have generated a same-store sales increase compared to last year’s very strong 11.5% increase. Our C.U.E. categories again posted solid increases in both sales and units, and contributed to our 20th consecutive quarter of year-over-year transaction count increases.”

Key Stats (on next page)…

Revenue decreased 15.58% from $1.29 billion in the previous quarter. EPS decreased 44.14% from $1.11 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.71 and has not changed. For the current year, the average estimate has moved up from a profit of $4.37 to a profit of $4.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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