NEW YORK (TheStreet) -- Shares of Tractor Supply Co. (TSCO - Get Report) are lower by -5.51% to $58 in pre-market trading today, continuing a decline from Wednesday's after-hours session following the company's preliminary 2014 second quarter results which are below analysts' expectations.
For the 2014 second quarter, the retail farm and ranch store operator reported an 8.8% sales growth to $1.58 billion, over the prior year's second quarter. Analysts polled by Thomson Reuters had estimated revenue of $1.6 billion.
The company is expecting EPS to be between 94 cents and 95 cents per share, compared to the consensus estimate of $1.02 per share.
Must Read: Warren Buffett's 25 Favorite Stocks
Based on its preliminary second quarter performance Tractor Supply is now expecting its 2014 full year results to be "at the low end" of its previously guided estimates of net sales between $5.62 and $5.70 billion, a growth of 2.5% to 4% in comparable store sales, and $2.54 to $2.62 in diluted earnings per share. Tractor Supply intends to release its 2014 second quarter results on July 23, after the close. Separately, TheStreet Ratings team rates TRACTOR SUPPLY CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate TRACTOR SUPPLY CO (TSCO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- TRACTOR SUPPLY CO has improved earnings per share by 12.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TRACTOR SUPPLY CO increased its bottom line by earning $2.33 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $2.33).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Specialty Retail industry and the overall market, TRACTOR SUPPLY CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Net operating cash flow has significantly increased by 60.04% to -$38.08 million when compared to the same quarter last year. In addition, TRACTOR SUPPLY CO has also vastly surpassed the industry average cash flow growth rate of -3.80%.
- The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 10.9% when compared to the same quarter one year prior, going from $44.01 million to $48.81 million.
- You can view the full analysis from the report here: TSCO Ratings Report
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts