Skip to main content

NEW YORK (TheStreet) -- Shares of Tractor Supply (TSCO) are retreating 3.83% to $89.56 in late-morning trading, even though the company reported 2016 second quarter earnings and revenue growth. 

The company reported adjusted earnings of $1.16 per share and revenue of $1.85 billion, which was in line with Wall Street's expectations and beat last year's $1.12 per share and revenue of $1.77 billion. 

The Brentwood-TN-based supplier of farming and gardening equipment was helped by the opening of 22 new stores in the second quarter of 2016, compared with the opening of 17 new stores in the same period last year. 

In late June, the company had warned investors that its 2016 second quarter sales had been hurt by colder weather this spring, and CEO Greg Sandfort reiterated that warning yesterday. 

"While it's our job to manage the business through changes in weather and other external factors, the extreme weather patterns in the first two months of the quarter simply proved to be too much to overcome in the more seasonal segments of our business," Sandfort said in the announcement. "We also do not anticipate that a significant shift in sales will come into the third quarter."

The company also announced that CFO Anthony F. Crudele will retire early in 2017 and be replaced by Kurt D. Barton early next year.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate TRACTOR SUPPLY CO as a Buy with a ratings score of B. This is driven by multiple strengths, 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, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: TSCO

Image placeholder title


data by