Tractor Supply Analysts Increase Their Forecasts After Upbeat Earnings

Tractor Supply Company TSCO reported better-than-expected fourth-quarter earnings on Thursday.

Tractor Supply reported a fourth-quarter FY23 sales decline of 8.6% year-on-year to $3.66 billion, marginally missing the consensus of $3.67 billion. Adjusted EPS of $2.28 beat the Wall Street view of $2.22, according to data from Benzinga Pro.

Comparable store sales decreased by 4.2%, driven by a comparable average ticket decline of 1.5% and a comparable average transaction count decrease of 2.7%.

For FY24, the company expects EPS of $9.85 – $10.50 versus the $10.32 estimate. It sees net sales of $14.7 billion – $15.1 billion versus the consensus of $15.03 billion. The company sees comparable store sale growth of (1.0%) – +1.5%.

"In 2024, we will continue to invest to strengthen our competitive advantages and to capture the significant growth opportunities in our market. We believe that our business can continue to perform well in the coming years given the investments we have made in our Life Out Here strategy. We remain excited about our bright future and are committed to delivering sustained long-term value creation for our shareholders," said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Tractor Supply shares gained 4.6% to close at $234.90 on Thursday.

These analysts made changes to their price targets on Tractor Supply after the company reported quarterly results.

• Telsey Advisory Group raised the price target on Tractor Supply from $245 to $250. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
• Raymond James increased Tractor Supply price target from $230 to $250. Raymond James analyst Matthew McClintock downgraded the stock from Strong Buy to Outperform.

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