Earnings Review and Free Research Report: Tractor Supply Co. Reported Q2 FY17 Results; Updated its Full Year Outlook
Research Desk Line-up: Sally Beauty Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 8, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tractor Supply Co. (NASDAQ: TSCO) ("TSC"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TSCO, following the Company's disclosure of its Q2 FY17 results on July 26, 2017, reporting a 8.9% growth in sales and earnings per share (EPS) of $1.25. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Specialty Retail, Other industry. Pro-TD has currently selected Sally Beauty Holdings, Inc. (NYSE: SBH) for due-diligence and potential coverage as the Company announced on August 03, 2017, its financial results for Q3 FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Sally Beauty when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TSCO; also brushing on SBH. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
In Q2 FY17, TSC had generated sales of $2.02 billion versus $1.85 billion for Q2 FY16; noting a y-o-y increase of 8.9%. The Company reported gross profit of $704.71 million in Q2 FY17 compared to $649.22 million in the prior year's same quarter, up by 8.5% on a y-o-y basis. The operating income of the Company was $257.93 million in Q2 FY17 compared to $249.25 million in Q2 FY16; reflecting an increase of 3.5% y-o-y.
The net income for TSC totaled $160.65 million in Q2 FY17 compared to $156.43 million in Q2 FY16; a rise of 2.7% y-o-y. The total comprehensive income for Q2 FY17 was $160.50 million compared to $155.06 million in Q2 FY16; an increase of 3.5% y-o-y.
TSC reported EPS (diluted) of $1.25 in Q2 FY17 compared to $1.16 in Q2 FY16; reflecting an increase of 7.8% y-o-y.
TSC stated that Q2 FY17 had one less sales day compared to Q2 FY16 and therefore it estimated that the one less sales day impacted comparable store sales by approximately 60 basis points. The increase in the reported quarter would have been approximately 2.8% on an equivalent quarter basis.
The Company missed Wall Street's estimates of EPS of $1.27 and net sale numbers came in below estimates by $2.9 million.
Segment Information
At the end of Q2 FY17 (July 01, 2017), rural lifestyle retail store chain, TSC, had 1,630 stores compared to 1,542 stores at the end of Q2 FY16 (June 25, 2016); an increase of 5.7% y-o-y - and included 14 new stores in the reported quarter compared to 22 in Q2 FY16.
The Company stated that the comparable store sales increased by 2.2% at the end of Q2 FY17 compared to a decline of 0.5% at the end of Q2 FY16. New store sales as a percentage of total sales at the end of the reported quarter was 5.9% compared to 5.2% at the end of Q2 FY16. The average transaction value in the stores was $46.48 in Q2 FY17 compared to $46.75 at the end of Q2 FY16; a slight decrease of 0.6% y-o-y. The Company also reported a flat comparable store average transaction value increase at the end of Q2 FY17 compared to negative 1.9% at the end of Q2 FY16. The exclusive brands sale as a percentage of total sales at the end of Q2 FY17 was 31.3% compared to 31.0% at the end of Q2 FY16; noting a slight drop of 0.9% y-o-y.
Cash Matters
TSC reported net cash flow from operating activities of $227.51 million in H1 2017 compared to $278.20 million in H1 2016, a decrease of 18.2% y-o-y. The Company reported net cash used in financing activities in H1 2017 of $127.80 million compared to $89.98 million in H1 2016, an increase of 42.03% y-o-y. The cash and cash equivalents reported by the Company at the end of H1 2017 was $67.79 million compared to $151.11 million in H1 2016.
Outlook
For FY17, TSC expects net sales to be between $7.13 billion and $7.19 billion against a previous guidance of $7.22 billion - $7.29 billion. The new comparable store sales estimates are now pegged at 1.1% - 1.7% compared to earlier guidance of 2.0% - 3.0%. Consequently, the Company now estimates net income for FY17 to be between $413 million and $419 million against the earlier estimates of $445 million and $457 million, and earnings per diluted share at $3.22 - $3.27 against the prior estimates of $3.44 - $3.52.
Stock Performance
On Monday, August 07, 2017, the stock closed the trading session at $56.61, marginally falling 0.67% from its previous closing price of $56.99. A total volume of 1.98 million shares have exchanged hands. Tractor Supply's stock price rallied 10.87% in the last one month. The stock is trading at a PE ratio of 17.09 and has a dividend yield of 1.91%. The stock currently has a market cap of $7.26 billion.
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