Tractor Supply Co. 3Q profit rises 39 percent

Tractor Supply says 3rd-quarter profit rises 39 percent as sales rise, gross margin improves

• On 4:57 pm EDT, Wednesday October 21, 2009

BRENTWOOD, Tenn. (AP) -- Retailer Tractor Supply Co. said Wednesday its third-quarter profit rose 39 percent as sales increased slightly and it improved its gross margin.

The Brentwood-based chain of stores sells supplies for farms and ranches.

It earned $22 million, or 60 cents per share, in the quarter that ended Sept. 26. That is up from the $15.9 million, or 43 cents per share, it earned a year earlier.

The quarterly per-share profit beat a consensus estimate of 59 cents from analysts polled by Thomson Reuters.

Revenue rose 2 percent to $747.7 million from $733.9 million. Analysts had expected $749 million.

Its gross margin rose to 32.9 percent of sales, compared to 29.8 percent in the prior year's third quarter.

Sales at stores open at least a year fell 5.1 percent during the quarter due to weak demand for seasonal big-ticket items, the company said.

Tractor Supply also reiterated a 2009 profit forecast of $2.88 to $2.98 per share. It said sales at stores open at least a year would fall 1 percent to 2 percent in fiscal 2009.

Its shares rose a penny to $50.97 in aftermarket trading after closing at $50.96, down 3.3 percent from a day earlier.