Tractor Supply’s Profits Exceed Expectations, Guidance Increased

Tractor Supply Co. TSCO,
reported second-quarter net income of $370.0 million, or $3.19 per share, up from $338.7 million or $2.90 per share last year. Revenue was $3.60 billion, up from $3.18 billion in 2020. The FactSet consensus was earnings per share of $2.98 and revenue of $3.48 billion. Same store sales grew 10.5%, with a 4.5% increase in comparable number of transactions and an average ticket growth of 6% as the main drivers of the result. The FactSet consensus was down 1.9%. On a two-year stack, same-store sales increased 41%. Tractor Supply raised its expectations for the full year, projecting revenue of $12.1 billion to $12.3 billion, from a previous range of $11.4 billion to $11.7 billion. Same-store sales are now expected to rise 11% to 13%, compared to previous expectations of a 5% to 8% increase. And earnings per share are now expected to be $7.70 to $8.00, up from $7.05 to $7.40. FactSet’s consensus is for revenue of $11.70 billion, EPS of $7.45 and same-store sales growth of 7.7%. Shares of Tractor Supply fell 2.1% in Monday’s premarket trading, but are up 34.4% this year. The S&P 500 index is up 15.2% so far for 2021.