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Tractor Supply Company (TSCO) is a leading retailer of farm and ranch products, providing essential goods for rural lifestyle consumers. With a market cap of $28.4 billion, Tractor Supply is committed to offering high-quality products across categories such as livestock, pet care, and home improvement, serving customers in over 1,900 stores nationwide. The Brentwood, Tennessee-based company is set to release its Q4 earnings before the market opens on Thursday, Jan. 30.
Ahead of the event, analysts expect Tractor Supply to report a profit of $0.45 per share, down 2.2% from $0.46 in the year-ago quarter. The company has consistently surpassed or matched Wall Street’s EPS estimates over the past four quarters. In Q3, the company reported an EPS of $0.45, which matched the consensus estimates.
For fiscal 2024, analysts expect Tractor Supply to report an adjusted EPS of $2.05, up 1.5% from $2.02 in fiscal 2023.
Tractor Supply shares have increased 18.9% over the past 52 weeks, trailing behind the S&P 500’s ($SPX) 22.1% gain and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.4% returns during the same period.
Tractor Supply’s shares dropped over 6% following its Q3 results on Oct. 24 due to weaker-than-expected comparable store sales, which declined slightly year-over-year, missing estimates. Net sales rose 1.6% to $3.5 billion but fell short of the consensus, raising concerns about demand softness. Higher SG&A expenses, which increased by 6.2% to $965.8 million, weighed on operating income, which declined 4.8% to $324.6 million. Despite a gross margin increase of 37.2%, the combination of missed sales expectations and rising costs led to a negative market reaction.
Analysts’ consensus opinion on Tractor Supply's stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of 31 analysts covering the stock, 15 advise a “Strong Buy” rating, one gives a “Moderate Buy” rating, 13 recommend a “Hold,” one suggests a “Moderate Buy,” and one advises a “Strong Sell.”
TSCO’s average analyst price target is $58.76, indicating a 10.5% potential upside from the current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
