Tractor Supply Stock Gains On Q3 Beat, Raised FY21 Outlook

Tractor Supply Company TSCO reported third-quarter FY21 sales growth of 15.8% year-on-year, to $3.02 billion, beating the analyst consensus of $2.85 billion.
Comparable store sales increased 13.1%, driven by comparable average ticket growth and comparable average transaction count growth of 9.5% and 3.6%, respectively. Comparable store sales increased 26.8% in the prior year's third quarter.
EPS of $1.95 topped the Wall Street view of $1.65.
Gross profit increased 14.5% Y/Y to $1.09 billion and the gross margin contracted 41 basis points to 36%.
The operating margin was 9.8%, and operating income for the quarter rose 17.9% to $297.2 million.
Tractor Supply held $1.1 billion in cash and equivalents as of September 25, 2021. Net cash provided by operating activities for the nine months totaled $871.8 million.
Capital expenditure for the quarter rose 122.7% Y/Y to $166.4 million.
"Despite unprecedented pressures across our supply chain, we are raising our outlook for fiscal 2021 and are on track for a record year of sales and earnings," said CEO Hal Lawton.
Outlook: Tractor Supply raised FY21 sales guidance to $12.6 billion (prior view $12.1 billion - $12.3 billion) versus the consensus of $12.26 billion.
The company raised the FY21 EPS outlook to $8.40 - $8.50 (prior $7.70 - $8.00) against the consensus of $8.00.
Price Action: TSCO shares are trading higher by 3.06% at $208.5 in premarket on the last check Thursday.

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