Tractor Supply Reaches Yearly High

Zacks

The shares of Tractor Supply Company (TSCO) reached a new high of $117.75 on Tuesday, Jun 18. This farm and ranch store chain retailer eventually closed at $117.61, up 1.8% from the previous day’s session and generated a year-to-date return of roughly 28.1%. The company currently trades at a forward P/E of 26.5x, a 30.5% premium to the industry average of 20.3x.

An impressive record of posting strong quarterly earnings, a solid financial position, sustained focus on maximizing productivity as well as initiatives to expand its brand portfolio, are the major attributes that pushed the shares of Tractor Supply to a new high. Average volume of shares traded over the last 3 months stands at approximately 536K.

If we look at the company’s earnings surprise history, this Zacks Rank #3 (Hold) stock has outperformed the Zacks Consensus Estimate in 19 of the past 20 quarters, the only exception being the last quarter where the company posted earnings which came in line with the Zacks Consensus Estimate. The average surprise for the past 20 quarters stands at 14.0%.

Tractor Supply posted strong first-quarter 2013 results on the back of robust top-line performance and improved margins. It declared results on Apr 24, 2013, wherein earnings of 62 cents per share surged nearly 12.7% year over year and were in line with the Zacks Consensus Estimate.

Tractor Supply’s total sales grew 6.4% to $1,085.8 million in the quarter from $1,020.4 million in the year-ago period, but missed the Zacks Consensus Estimate of $1,098 million. Additionally, comparable-store sales (comps) for the quarter climbed 0.5%.

Tractor Supply reiterated its 2013 net sales guidance, projecting sales in the range of $5.07 billion – $5.17 billion, with comps expected to improve 3%−5%. The company anticipates 2013 earnings in the range of $4.32 − $4.40 per share, including an estimated cost of 6 cents to 7 cents per share related to relocation of its distribution center in the Southeast and its corporate data center.

Besides Tractor Supply, companies such as Kroger Company (KR), V. F. Corporation (VFC) and PVH Corp. (PVH) achieved new 52-week highs of $35.56, $190.80 and $126.27, respectively, on Tuesday, Jun 18.

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