Tractor Supply Company Earnings Preview

Motley Fool Staff
Updated

Investors are on the edges of their seats, hoping that Tractor Supply Company (NAS: TSCO) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday, Oct. 19. Tractor Supply is an operator of retail farm and ranch stores in the United States and is focused on supplying the lifestyle needs of recreational farmers and ranchers and those who enjoy the rural lifestyle.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Tractor Supply, with 11 of 19 rating it a buy and the remainder rating it a hold. Analysts like Tractor Supply better than competitor Lumber Liquidators overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $933.1 million in revenue this quarter. That would represent a rise of 12.5% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.52 per share. Estimates range from $0.49 to $0.55.

What our community says:
CAPS All-Stars are solidly behind the stock, with 92.2% awarding it an "outperform" rating. The community at large backs the All-Stars, with 90.1% granting it a rating of "outperform." Fools are bullish on Tractor Supply and haven't been shy with their opinions lately, logging 109 posts in the past 30 days. Despite the majority sentiment in favor of Tractor Supply, the stock has a middling CAPS rating of three out of five stars.

Management:
Tractor Supply's profit has risen year over year by an average of 48.2% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

34.2%

32.7%

32.6%

33.7%

Operating Margin

12.2%

3.4%

7.6%

6.1%

Net Margin

7.7%

2.2%

4.9%

3.9%

One final thing: If you want to keep tabs on Tractor Supply Company movements, and for more analysis on the company, make sure you add it to your Watchlist.

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