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Tractor Supply Company (TSCO) is a leading retailer of farm and ranch products, providing essential goods for rural lifestyle consumers. With a market cap of $28.4 billion, Tractor Supply is committed to offering high-quality products across categories such as livestock, pet care, and home improvement, serving customers in over 1,900 stores nationwide. The Brentwood, Tennessee-based company is set to release its Q4 earnings before the market opens on Thursday, Jan. 30.
Ahead of the event, analysts expect Tractor Supply to report a profit of $0.45 per share, down 2.2% from $0.46 in the year-ago quarter. The company has consistently surpassed or matched Wall Street’s EPS estimates over the past four quarters. In Q3, the company reported an EPS of $0.45, which matched the consensus estimates.
For fiscal 2024, analysts expect Tractor Supply to report an adjusted EPS of $2.05, up 1.5% from $2.02 in fiscal 2023.
Tractor Supply shares have increased 18.9% over the past 52 weeks, trailing behind the S&P 500’s ($SPX) 22.1% gain and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.4% returns during the same period.
Tractor Supply’s shares dropped over 6% following its Q3 results on Oct. 24 due to weaker-than-expected comparable store sales, which declined slightly year-over-year, missing estimates. Net sales rose 1.6% to $3.5 billion but fell short of the consensus, raising concerns about demand softness. Higher SG&A expenses, which increased by 6.2% to $965.8 million, weighed on operating income, which declined 4.8% to $324.6 million. Despite a gross margin increase of 37.2%, the combination of missed sales expectations and rising costs led to a negative market reaction.
Analysts’ consensus opinion on Tractor Supply's stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of 31 analysts covering the stock, 15 advise a “Strong Buy” rating, one gives a “Moderate Buy” rating, 13 recommend a “Hold,” one suggests a “Moderate Buy,” and one advises a “Strong Sell.”
TSCO’s average analyst price target is $58.76, indicating a 10.5% potential upside from the current price levels.
