Tractor Supply Outruns Estimates Again

Tractor Supply (NAS: TSCO) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tractor Supply beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.

Gross margins shrank, operating margins grew, and net margins grew.

Revenue details
Tractor Supply logged revenue of $1.24 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $1.19 billion. Sales were 20% higher than the prior-year quarter's $1.03 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.96. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.96 for Q4 were 43% higher than the prior-year quarter's $0.67 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.5%, 10 basis points worse than the prior-year quarter. Operating margin was 9.0%, 130 basis points better than the prior-year quarter. Net margin was 5.7%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $921.6 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $4.64 billion. The average EPS estimate is $3.47.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 302 members rating the stock outperform, and 32 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Tractor Supply a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tractor Supply is outperform, with an average price target of $75.90.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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