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Tractor Supply Beats Estimates and Lifts Outlook

Tractor Supply topped analyst estimates and raised its guidance. The stock is lower.

Shares of Tractor Supply (TSCO) - Get Report  reported second-quarter results ahead of analyst expectations and raised its earnings guidance. 

The Brentwood, Tenn., company reported second quarter earnings of $3.19 a share, up from $2.90 in the year-earlier quarter. Revenue of $3.6 billion exceeded the year-earlier $3.18 billion.

Analysts surveyed by FactSet were expecting the company to report earnings of $2.98 a share on revenue of $3.48 billion. 

Comparable-store sales in the quarter increased 10.5%, reflecting 4.5% more transactions and 6% higher average customer spending per transaction.

Gross-profit margin narrowed to 35.8% from 36.4%, "driven by higher transportation costs, the initial impact from the relaunch of the company's Neighbor's Club loyalty program" and a product-mix shift, the company said.

At last check Tractor Supply stock was 6.8% lower at $176.10.

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"As the country reopens, the Out Here lifestyle remains incredibly relevant as we continue to grow our active customer count and retain last year’s new and reengaged customers," Chief Executive Hal Lawton said in a statement. 

For the full year, the company now expects revenue between $12.1 billion and $12.3 billion, up from its previous guidance between $11.4 billion and $11.7 billion.

The company also expects to earn between $7.70 and $8 a share, up from its previous expectation between $7.05 and $7.40 a share. 

Analysts in the FactSet survey are expecting the company to report full-year earnings of $7.43 a share on revenue of $11.66 billion. 

The company now expects comparable-store sales to rise between 11% and 13%, also up from its previous view of 5% to 8% growth. 

And Tractor Supply expects to buy back $700 million to $800 million of stock this year.