- Tractor Supply beats 1Q estimate with an EPS of $1.83 instead of the predicted $1.71.
- Net sales total $3.39 billion, a 2.9% increase y/y, closely meeting the estimated $3.4 billion.
- Comparable sales rise by 1.1% against a prior increase of 2.1% y/y, which is higher than the 0.61% estimate.
- Gross margin stands at 36% versus 35.5% y/y and meets closely with the predicted 36.1%.
- The average transaction value decreases slightly by 0.4% y/y to $58.66, which is slightly higher than the estimated $58.60.
- Overall retail space expands by 1.6% y/y to 38.14 million square feet, slightly shorter than the estimated 38.78 million square feet.
- Tractor Supply store count increases by 3.2% y/y to 2,233 stores, exceeding the estimate of 2,215 stores.
- Petsense store count increases by 6.9% y/y to 202 stores, going beyond the estimate of 200.88 stores.
- Confidence in the 2024 outlook persists due to share gains and the continued scaling of the ‘Life Out Here’ strategy.
- The final analyst recommendation tally shows 16 buys, 13 holds, and 3 sells.
Tractor Supply Company on Smartkarma
Analyst coverage of Tractor Supply Company on Smartkarma has been diverse, with contrasting sentiments provided by different experts. Baptista Research, in their report “Tractor Supply Company: Strategic Focus On Exclusive Brands Expansion & Other Key Drivers,” presented a bullish outlook. Despite facing challenges like unfavorable weather and economic uncertainties, Tractor Supply Company showcased resilience and achieved positive results in various operational aspects. The company’s strong business model, focusing on essential needs, has been a key factor in its steady performance over the years.
On the other hand, Baptista Research‘s report titled “Tractor Supply Company: Leading The Farm Specialty Retail Sector With Strategic Expansion! – Major Drivers” painted a less optimistic picture. The company’s inability to meet revenue and earnings expectations was highlighted, although there was stability in active customer counts and promising growth in reactivated and new customers. Through their detailed financial analysis, Baptista Research examined the company’s historical performance to provide a comprehensive view of Tractor Supply Company‘s current standing in the market.
A look at Tractor Supply Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Tractor Supply Company, the retail farm store chain in the United States, holds a promising long-term outlook based on the Smartkarma Smart Scores. With a strong Momentum score of 5, indicating significant positive market trends, and a Growth score of 4, showing potential for expansion and development, the company appears well-positioned for future success. Additionally, the company’s Dividend score of 3 suggests a stable income stream for investors, enhancing its attractiveness.
However, Tractor Supply Company‘s Value and Resilience scores sit at 2, indicating room for improvement in terms of undervaluation and coping with economic downturns. Despite these areas for potential growth, the overall outlook for Tractor Supply Company seems positive, supported by its diverse range of products catering to various customer segments, including farmers, ranchers, contractors, and tradesmen.
Summary: Tractor Supply Company operates a retail farm store chain in the United States, offering a wide range of farm maintenance, animal, general maintenance, and lawn products. Serving a customer base that includes hobby, part-time, and full-time farmers and ranchers, as well as rural customers, contractors, and tradesmen, the company plays a significant role in supporting the agricultural and rural sectors in the US.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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