Tractor Supply's Earnings: A Preview

Tractor Supply TSCO is gearing up to announce its quarterly earnings on Thursday, 2024-10-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Tractor Supply will report an earnings per share (EPS) of $2.23.

The market awaits Tractor Supply's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.00, leading to a 1.97% increase in the share price the following trading session.

Here's a look at Tractor Supply's past performance and the resulting price change:

Tracking Tractor Supply's Stock Performance

Shares of Tractor Supply were trading at $291.44 as of October 22. Over the last 52-week period, shares are up 54.08%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Tractor Supply

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Tractor Supply.

A total of 16 analyst ratings have been received for Tractor Supply, with the consensus rating being Buy. The average one-year price target stands at $298.12, suggesting a potential 2.29% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Ulta Beauty, Dick's Sporting Goods and Chewy, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Ulta Beauty, with an average 1-year price target of $415.62, indicating a potential 42.61% upside.
• The consensus outlook from analysts is an Neutral trajectory for Dick's Sporting Goods, with an average 1-year price target of $243.19, indicating a potential 16.56% downside.
• The consensus among analysts is an Outperform trajectory for Chewy, with an average 1-year price target of $31.43, indicating a potential 89.22% downside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Ulta Beauty, Dick's Sporting Goods and Chewy are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Tractor Supply ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Get to Know Tractor Supply Better

Tractor Supply is the largest operator of retail farm and ranch stores in the United States. The company targets recreational farmers and ranchers and has little exposure to commercial and industrial farm operations. Currently, the company operates 2,254 of its namesake banners in 49 states, including 81 Orscheln Farm and Home stores (rebranded as Tractor Supply), along with 205 Petsense by Tractor Supply stores. Stores are generally concentrated in rural communities, as opposed to urban and suburban areas. In fiscal 2023, revenue consisted primarily of livestock, equine & agriculture (27%), companion animal (25%), and seasonal & recreation (22%).

Breaking Down Tractor Supply's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Tractor Supply's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 1.48%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Tractor Supply's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.01% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 19.2%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Tractor Supply's ROA excels beyond industry benchmarks, reaching 4.4%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.22.

To track all earnings releases for Tractor Supply visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.