Tractor Supply Earnings Aren’t Enough for Investors

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When Tractor Supply Co. (NASDAQ: TSCO) released its third-quarter financial results after the markets closed on Wednesday, the company reported $0.67 in earnings per share (EPS) and $1.54 billion in revenue. Thomson Reuters consensus estimates called for $0.66 in EPS and revenue of $1.54 billion. In the same period of last year, the company posted EPS of $0.64 and $1.48 billion in revenue.

Comparable store sales decreased 0.6%, compared to a 2.9% increase in the prior year’s third quarter. Comparable average ticket decreased 1.1%, while comparable store transaction counts remained positive with an increase of 0.5%, representing the 34th consecutive quarter of transaction count growth.

During this quarter, Tractor Supply opened 34 new stores and closed one store, versus 30 new store openings and three store closures in the previous year.

In terms of the full-year outlook, the company expects to have EPS in the range of $3.22 to $3.26 and revenues in the range of $6.70 billion to $6.75 billion. Consensus estimates called for $3.24 in EPS and $6.72 billion in revenue.

Greg Sandfort, CEO of Tractor Supply, commented on earnings:

Our third quarter sales performance was significantly influenced by economic headwinds in our energy and agricultural markets and lower pre-season demand for cold weather and heating products. We do not believe the current trends are the result of significant changes in the competitive landscape or market share. During this more challenging environment, our teams are focused on driving sales and managing controllable items such as inventory and expenses. Over the long-term, we remain focused on enhancing our merchandise offerings, systems, people and processes to better meet the evolving needs of our customers, drive profitable growth and return value to our shareholders.

Shares of Tractor Supply were trading down about 5.6% at $63.58 on Thursday. The stock has a consensus analyst price target of $83.24 and a 52-week trading range of $63.26 to $97.25.

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