Tractor Supply Company Reports Mixed Q3 Results

NEW YORK – Tractor Supply Company (NASDAQ:TSCO), the largest rural lifestyle retailer in the United States, reported mixed third-quarter results on Thursday, with earnings slightly beating expectations but revenue falling short. The company's shares dipped 1.5% following the announcement.

For the third quarter ended September 28, 2024, Tractor Supply reported earnings per share (EPS) of $2.24, narrowly surpassing the analyst estimate of $2.23. However, revenue came in at $3.47 billion, just below the consensus estimate of $3.48 billion. The company's net sales increased 1.6% YoY, while comparable store sales experienced a slight decrease of 0.2%.

Hal Lawton, President and CEO of Tractor Supply, commented on the results, stating, "We delivered on our expectations for the third quarter amid a tepid retail sales environment while advancing our Life Out Here strategy. The fundamentals of our business remain strong with ongoing market share gains."

The company's gross profit increased 3.2% to $1.29 billion, with the gross margin expanding by 56 basis points to 37.2%. This improvement was primarily attributed to lower transportation costs and disciplined product cost management.

Looking ahead, Tractor Supply raised the lower end of its annual guidance. The company now expects full-year 2024 EPS to be between $10.10 and $10.40, compared to the analyst consensus of $10.29. Revenue for the fiscal year is projected to be in the range of $14.85 billion to $15 billion, slightly above the consensus estimate of $14.89 billion.

In a strategic move, Tractor Supply also announced a definitive agreement to acquire Allivet, a leading online pet pharmacy, aiming to expand its offerings to its 37 million Neighbor's Club members.

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