Tractor Supply Company (NASDAQ:TSCO) is likely to register increases in the top and bottom lines when it reports second-quarter 2022 results on Jul 21, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.89 billion, indicating growth of 8.2% from the prior-year reported figure.
The bottom line of the largest rural lifestyle retailer in the United States is expected to have increased year over year. The Zacks Consensus Estimate for earnings per share for the second quarter has been unchanged at $3.51 in the past 30 days. The figure suggests growth of 10% from the year-ago period.
Tractor Supply has a trailing four-quarter earnings surprise of 12.4%, on average. In the last reported quarter, this Brentwood, TN-based company surpassed the Zacks Consensus Estimate by 17.9%.
Tractor Supply Company Price and EPS Surprise
Key Factors to Note
Tractor Supply has been benefiting from its robust e-commerce business, strong demand and strategic growth endeavors. Strength in the Life Out Here Strategy and healthy demand for its product categories have been aiding the top and bottom lines for the past few quarters. Continued sturdy demand for everyday merchandise, including consumable, usable and edible products, as well as strength in seasonal categories, is likely to have boosted the performance in the second quarter.
Given the changing consumer trends, the company remains focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. It is on track with the ‘ONETractor' strategy to connect store and online shopping. The company's omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and the new mobile app. Gains from these efforts are expected to have led to strong e-commerce growth in the to-be-reported quarter.
The company is also expected to have benefited from the progress on its "Life Out Here" strategy and everyday low pricing. Its Neighbor's Club loyalty program has also been boosting sales. Tractor Supply has been on track with the Project Fusion remodels and Side Lot transformation to remain nationally strong and locally relevant by bringing the latest merchandising strategies to life. These have been significant investments toward stores and are expected to have boosted productivity across the existing and new stores.
However, product cost inflation, higher transportation costs and supply-chain constraints have been hurting margins for a while. Elevated costs, stemming from increased wage rates, have been acting as deterrents. The company has been witnessing increased investments in the Life Out Here strategic efforts. These costs are likely to have marred the performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Beacon Roofing Supply (NASDAQ:BECN) currently has an Earnings ESP of +15.31% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.33 suggests growth of 46.5% from the year-ago reported number.
Beacon Roofing's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.28 billion, which suggests a rise of 22% from the prior-year quarter's reported figure. BECN has a trailing four-quarter earnings surprise of 28.1%, on average.
The Kroger Co. (NYSE:KR) currently has an Earnings ESP of +1.17% and a Zacks Rank #2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 81 cents suggests an improvement of 1.25% from 80 cents reported in the year-ago quarter.
The Zacks Consensus Estimate for Kroger's quarterly revenues is pegged at $33.99 billion, which indicates an improvement of 7.3% from the figure reported in the prior-year quarter. KR has a trailing four-quarter earnings surprise of 20.3%, on average.
Dollar General (NYSE:DG) currently has an Earnings ESP of +0.09% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.90 suggests 7.8% growth from the year-ago quarter.
Dollar General's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $9.35 billion, indicating an improvement of 8.1% from the figure reported in the year-ago quarter. DG has a trailing four-quarter earnings surprise of 2.8%, on average.
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