Tractor Supply Company Analysts Raise Their Forecasts Following Upbeat Earnings

Tractor Supply Company TSCO reported better-than-expected earnings for its first quarter on Thursday.

The company reported first-quarter earnings per share of $1.83, beating the analyst consensus of $1.71. Quarterly revenues of $3.395 billion were in line with the estimates, rising 2.9% year over year, according to data from Benzinga Pro.

Comparable store sales, which increased 1.1%, slowed compared to the prior year  (2.1% growth for the previous year's first quarter). The gross margin increased 50 basis points to 36.0% from 35.5% in the first quarter of the prior year.

“For the first quarter, Tractor Supply’s results were in line with our expectations with positive comparable store sales and robust earnings growth. I want to thank our more than 50,000 Team Members for their enduring commitment to living our Mission and Values and providing exceptional customer service, which allowed us to deliver solid financial performance in the first quarter. We saw several positive signs in our business during the quarter, including ongoing market share gains, transaction growth and strength in big ticket sales. Most importantly, we believe that our customer base remains healthy and engaged. We remain confident in our outlook for 2024 given our share gains and the continued scaling of our Life Out Here strategy. We remain committed to disciplined investments to capture the significant long-term growth opportunities in our market,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Tractor Supply reiterated its FY24 outlook with GAAP EPS of $9.85-10.50 versus the $10.22 estimate. The company sees sales of $14.700 billion-15.100 billion versus the $14.98 billion estimate.

Tractor Supply shares rose 2.8% to close at $265.26 on Thursday.

These analysts made changes to their price targets on Tractor Supply following earnings announcement.

• Telsey Advisory Group increased the price target on Tractor Supply from $ $275 to $280. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
• Baird boosted the price target on Tractor Supply from $260 to $285. Baird analyst Justin Kleber maintained an Overweight rating.

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