Tractor Supply (TSCO) Looks Firm from Earnings Perspective - Analyst Blog
We expect Tractor Supply Company TSCO to beat expectations when it reports second-quarter 2015 results, after the market closes, on Jul 22.
Why a Likely Positive Surprise?
Our proven model shows that Tractor Supply is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Tractor Supply currently has an Earnings ESP of +0.89%. This is because the Most Accurate estimate of $1.13 stands above the Zacks Consensus Estimate of $1.12.
Zacks Rank: Tractor Supply carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, the Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Tractor Supply’s Zacks Rank #3 and Earnings ESP of +0.89% make us confident of an earnings beat.
What is driving the Better-than-Expected Results?
Tractor Supply has been delivering better-than-expected results consecutively for the past three quarters. In the last quarter, it gained from solid sales coupled with efficient merchandise and inventory management. Following a strong start to the year and encouraging business trends, the company retained its earnings per share and sales forecasts for 2015.
Tractor Supply is also progressing well with its growth plans, including the expansion of store base and incorporation of technological advancements to serve clients better. These measures will boost its top line and, in turn, enhance profitability. Further, the company intends to remain committed to efficient inventory management, shipment timing and marketing strategies. We believe these constant endeavors position the company well for its upcoming results.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Cal-Maine Foods Inc. CALM has an Earnings ESP of +5.17% and a Zacks Rank #1 (Strong Buy).
Skechers USA Inc. SKX has an Earnings ESP of +2.02% and a Zacks Rank #1.
Caterpillar Inc. CAT has an Earnings ESP of +6.40% and a Zacks Rank #1.
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TRACTOR SUPPLY (TSCO): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
CAL-MAINE FOODS (CALM): Free Stock Analysis Report
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