Will Tractor Supply (TSCO) Begin 2015 with an Earnings Beat? - Analyst Blog
Tractor Supply Company TSCO is slated to post its first-quarter 2015 results after the market closes on Apr 22, 2015. In the previous quarter, the company reported a positive earnings surprise of 6.6%. Let’s see how things are shaping up for this announcement.
Factors to Influence this Quarter's Results
Tractor Supply has been delivering better-than-expected results consecutively over the past two quarters. In the last quarter, it gained from strong sales driven by improved comparable-store sales (comps), increase in operating margin and lower expenses as a percentage of sales.
Moreover, the company has been benefiting from its consistent focus on revamping through expansion and enhancement of store productivity. These measures will boost its top line and, in turn, enhance profitability. Further, going forward, the company intends to remain committed to efficient inventory management, shipment timing and marketing strategies. We believe that these constant endeavors keep the company well positioned for its upcoming results.
Earnings Whispers?
Our proven model does not conclusively show that Tractor Supply is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.
Zacks ESP: Tractor Supply currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of 41 cents per share.
Zacks Rank: Tractor Supply’s Zacks Rank #2 (Buy) when combined with a 0.00% ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
BJ's Restaurants, Inc. BJRI has an Earnings ESP of +3.57% and a Zacks Rank #1 (Strong Buy).
American Eagle Outfitters Inc.’s AEO Earnings ESP stands at +18.18% and it carries a Zacks Rank #2.
Best Buy Co. Inc. BBY with an Earnings ESP of +3.45% holds a Zacks Rank #3 (Hold).
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