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Tractor Supply Company (TSCO), with a market cap of $27.9 billion, is the largest operator of rural lifestyle retail stores in the United States, catering to the needs of recreational farmers, ranchers, and small businesses. Based in Brentwood, Tennessee, the company is slated to announce its fiscal Q2 earnings results before the market opens on Thursday, Jul. 25.
Ahead of this event, analysts expect the rural lifestyle retailer to report a profit of $3.94 per share, up 2.9% from $3.83 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. The company’s EPS of $1.83 jumped 10.9% annually in the most recent quarter, sailing past the consensus EPS estimate by a 7.7% margin.
For fiscal 2024, analysts expect TSCO to report EPS of $10.34, up 2.5% from $10.09 in fiscal 2023. Looking ahead to fiscal 2025, EPS is projected to climb around 10% annually to $11.37.
In 2024, shares of Tractor Supply surged nearly 21.5%, outperforming the S&P 500 Index's ($SPX) 18.1% gain and the S&P Retail SPDR's (XRT) 4.3% returns on a YTD basis.
Shares of Tractor Supply have surged this year primarily due to its resilient business model, which emphasizes consumable products like livestock feed and fertilizer, consistent dividend growth, and ambitious expansion plans to increase its store footprint. The company kicked off 2024 by launching 17 new Tractor Supply stores and four brand-new Petsense by Tractor Supply locations in the first quarter, underscoring the company's aggressive growth and expansion strategy.
Plus, despite missing revenue estimates, Tractor Supply's shares surged after its Q1 earnings reported on Apr. 25 due to its significant beat on profit expectations. This was driven by higher margins from efficient cost management, lower transport costs, and strong demand for pet food and gardening products despite inflationary pressures.
Analysts' consensus view on Tractor Supply stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 28 analysts covering the stock, 13 recommend a "Strong Buy," one has a "Moderate Buy" rating, 12 give a "Hold" rating, one suggests a "Moderate Sell," and one advises a "Strong Sell," a consensus that has remained steady over the past three months.
The average analyst price target for TSCO is $263.35, suggesting a potential upside of only 1.6% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
