Tractor Supply Higher After Profit Doubles, Guidance Raised

Tractor Supply jumped after the farm-and-ranch-equipment provider reported earnings more than doubled on 43% higher sales and raised its guidance.
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Tractor Supply  (TSCO) - Get Report jumped after the the farm-and-ranch-equipment provider reported that first-quarter earnings more than doubled on 43% higher sales and raised its guidance.

The Brentwood, Tenn., company earned $1.55 a share against 71 cents in the year-earlier quarter. Sales leaped 43% to $2.79 billion while comparable-store sales rose nearly 40%.  

Analysts surveyed by FactSet were expecting earnings of 98 cents a share on revenue of $2.47 billion.

At last check the shares of Tractor Supply were 3.6% higher at $186.62.

All geographic regions saw comparable-store sales grow at least 30%. And Tractor Supply’s e-commerce sales at least doubled for the fourth consecutive quarter.

Gross-profit margin widened 1.48 percentage points to 35.2% from 33.8%.

At the end of the first quarter Tractor Supply held cash and cash equivalents of $1.15 billion and had not drawn on its $500 million revolving credit facility.

A "resilient business model," "strategic investments" and a strong balance sheet "position us to capitalize on the momentum in our business in 2021 and beyond," Chief Executive Hal Lawton said in a statement. 

As a result, the company raised its full-year-earnings expectation to a range of $7.05 to $7.40 a share, up from its previous view between $6.50 and $6.90. 

Net sales are expected to range between $11.4 billion and $11.7 billion, up from $10.7 billion to $11 billion. 

Wall Street is expecting earnings of $6.79 a share on revenue of $10.9 billion, according to FactSet. 

The company expects to buy back $700 million to $800 million of stock in 2021.