Tractor Supply Q1 Earnings Exceed Expectations; Reiterates FY22 Outlook

Tractor Supply Co TSCO reported first-quarter FY22 sales growth of 8.3% year-on-year to $3.02 billion, beating the consensus of $2.92 billion.
Comparable store sales increased 5.2%, driven by comparable average ticket growth of 6.7% and a decline in comparable average transaction count of 1.4%. Comparable store sales grew 38.6% in the prior year's first quarter.
EPS of $1.65 topped the Wall Street view of $1.41.
Gross profit increased 7.4% Y/Y to $1.06 billion, and the gross margin contracted 29 basis points to 34.9%.
The operating margin was 8.1%, and operating income for the quarter rose 6% to $244.3 million.
Tractor Supply held $405.4 million in cash and equivalents as of March 26, 2022. Net cash provided by operating activities for the quarter totaled $59.1 million.
Outlook: Tractor Supply confirmed its FY22 guidance, initially provided on January 27, 2022. It sees FY22 sales of $13.6 billion - $13.8 billion versus the consensus of $13.79 billion.
The company expects FY22 EPS of $9.20 - $9.50, against the consensus of $9.41.
"While we anticipate that we will continue to operate in a highly inflationary and volatile environment, we believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time," said CEO Hal Lawton.
Price Action: TSCO shares are trading lower by 1.99% at $216.70 on the last check Thursday.

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