Tractor Supply Boosts 3Q And 2009 Profit Outlook

BRENTWOOD, Tenn. (AP) — Tractor Supply Co. said Thursday that it expects to post a third-quarter and full-year profits above current Wall Street expectations, citing its ability to manage markdowns, inventories and expenses effectively.

Its shares rose $1.99, or 3.9 percent, to $52.79 in morning trading.

The U.S. farm and ranch retail store chain said it expects to post a third-quarter profit of about $21.1 million to $22.2 million, or 58 cents to 60 cents per share. Analysts polled by Thomson Reuters expect a profit of 46 cents per share for the period.

But it expects sales for the quarter rose just 1.9 percent to $747.7 million on a 5.1 percent drop in sales at stores open at least a year, missing analysts' expectations of $752.7 million in sales.

Tractor Supply attributed the weaker-than-expected sales to tough comparisons in the areas of emergency-response and seasonal products.

Based on the expected third-quarter results, Tractor Supply boosted its full-year profit prediction to a range of $2.88 to $2.98 per share from its previous estimate of $2.78 to $2.92 per share. Analysts expect a 2009 profit of $2.86 per share.

The company expects sales for the year to total between $3.17 billion to $3.2 billion, while analysts expect sales of $3.2 billion.

The company plans to release its third-quarter results on Oct. 21.