Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Tractor Supply (TSCO) is one of those names which is under the radar but having a very good year. This is a play on the agricultural side of things and unlike a company like Deere (DE) which has struggled since January, IT IS *not* a global play – which in the current market, has been an advantage.
Tractor Supply Company operates retail farm and ranch stores in the United States. Its stores offer a selection of merchandise, including equine, pet, and animal products, such as items required for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, including lawn and garden items, power equipment, gifts, and toys; maintenance products for agricultural and rural use; and work/recreational clothing and footwear. The company operates its retail stores under the Tractor Supply Company and Del?s Farm Supply names, as well as a Website under the TractorSupply.com name. As of December 31, 2011, it operated 1,085 retail farm and ranch stores in 44 states.
This morning the $7B market cap retailer pre-announced a very good quarter, which it attributed in part to the very warm weather in the United States this summer. However even with that “pull ahead” it has raised full year guidance as well.
- Tractor Supply Co, a farm and ranch products retailer, forecast a better-than-expected first-quarter profit as warmer weather spurred sales of spring merchandise. The Brentwood, Tennessee-based company projected first-quarter earnings of 53-55 cents per share, easily trumping analyst estimates of 32 cents a share, according to Thomson Reuters I/B/E/S.
- “We believe sales of certain seasonal merchandise categories were pulled forward into the first quarter due to the early spring weather and would not be expected to recur in the second quarter,” the company said in a statement.
- The company posted first-quarter net sales of $1.02 billion, up from $836.6 million last year and above market estimates of $937.36 million.
- Tractor Supply raised its full-year profit outlook to between $3.52 per share and $3.60 per share. It had earlier expected $3.38 per share to $3.46 per share. The company expects net sales to come in between $4.61 billion and $4.68 billion, up from its previous forecast of $4.56 billion to $4.66 billion.
- Analysts, on average, expect full-year earnings of $3.52 a shares on revenue of $4.64 billion.
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