Latest news with #TSCO
CNBC
6 days ago
- Business
- CNBC
Bank of America double upgrades this rural retailer, says it will benefit from tariffs
Bank of America is more bullish on Tractor Supply Company following a solid earnings report. The bank double upgraded the farm supplies retailer to a buy rating from underperform, with analyst Robert Ohmes lifting his price target to $70 per share from $53. Based in a Nashville suburb, Tractor Supply shares have risen 11% this year, outperforming the S & P 500. Ohmes' updated stock outlook is about 18% above where the stock closed on Thursday afternoon. TSCO YTD mountain TSCO YTD chart As a catalyst, Ohmes pointed to Tractor Supply's strong second-quarter results, which show a "return of momentum." The company's earnings and revenue both beat Wall Street expectations in the latest quarter. "Importantly, comps were driven by momentum in year-round categories, especially consumable, usable and edible (C.U.E.) products and sales were also positive in apparel, gift and décor and big-ticket items," the analyst wrote. "Given the low elasticity (consumers don't overspend in good times or pull back in difficult times), we think TSCO can also benefit from tariffs." What's more, customer traffic could benefit from multiple initiatives Tractor Supply is undertaking, including improved Project Fusion store remodels and partnerships with value-oriented private label and exclusive brands. "We see a higher multiple and a return to faster EPS growth of 10%+ as deflation headwinds abate and initiatives increase in 2H25 and into 2026," Ohmes wrote in a 14-page report. "We believe TSCO has similarities to and compares favorably with leading Broadline retailers given TSCO's high percent of consumables (40-45% of sales)." Another growth opportunity comes from Tractor Supply's plans to open new stores in the northwest, where it is currently underrepresented. Ohmes also sees an opportunity for Tractor Supply's delivery services initiative to eventually generate $1 billion in sales. "TSCO has an operational edge in rural U.S. and is reoptimizing trucks with a fleet of TSCO Delivery Drivers and utilizing a 145 hub stores 220 spoke stores rollout strategy (similar to auto parts distribution), with over 600 sales reps for larger customers (that spend $10k+ on a weekly basis)," Ohmes wrote. "Order sizes already ave. $400 and up to $40,000."
Yahoo
6 days ago
- Business
- Yahoo
Tractor Supply Co (TSCO) Q2 2025 Earnings Call Highlights: Record Sales and Strategic Growth ...
Net Sales: Increased by 4.5% to $4.44 billion, marking the largest sales quarter ever. Comparable Store Sales: Increased by 1.5%, driven by a 1% increase in transactions and a 0.5% increase in average ticket. Diluted EPS: Reported at $0.81. Gross Margin: Expanded by 31 basis points to 36.9%. SG&A Expenses: Increased by 51 basis points to 23.9% of sales. Operating Income: Grew 2.9% to $577.8 million. Net Income: Increased 1.1% to $430 million. Inventory: Merchandise inventories totaled $3.1 billion, a 1.5% increase in average inventory per store. Store Openings: Opened 24 new Tractor Supply stores and two Petsense by Tractor Supply stores; closed one Petsense store. Digital Sales: Grew at a mid-single-digit rate, with nearly 80% of digital orders fulfilled by stores. Neighbor's Club Membership: Reached a record 41 million members, accounting for over 80% of total sales. Final Mile Initiative: Expanded to cover about 15% of stores, with plans to reach 25% by year-end. Warning! GuruFocus has detected 4 Warning Signs with OHEL:RAP1V. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Tractor Supply Co (NASDAQ:TSCO) delivered record results in the second quarter, with net sales growing by 4.5% and reaching $4.44 billion. The company saw exceptional customer engagement, achieving all-time highs in Neighbor's Club membership, customer satisfaction, and new customer growth. Tractor Supply Co (NASDAQ:TSCO) experienced comp transaction growth, a key indicator of its business health, and saw sequential comp sales improvement across the quarter. The company's Final Mile initiative is expanding, with early results exceeding expectations, and is seen as a significant growth driver. Tractor Supply Co (NASDAQ:TSCO) is optimistic about the second half of 2025, expecting a step change in comp performance supported by favorable lapping and strong consumer confidence in rural America. Negative Points The company faced softness in select discretionary categories, including pet hardlines, gun safes, and air compressors. Certain later-cycle spring businesses, such as chemicals, sprayers, and pressure washers, performed below expectations in the quarter. Tractor Supply Co (NASDAQ:TSCO) experienced a modest deleverage of fixed costs due to the level of comparable store sales. The company is facing added cost pressures from evolving tariffs, which are expected to impact the second half of the year. Tractor Supply Co (NASDAQ:TSCO) reduced its share repurchase guidance for the year, reflecting a more measured pace of repurchases due to capital allocation discipline. Q & A Highlights Q: How should we think about the second half in terms of traffic and ticket changes compared to the previous quarter? A: Kurt Barton, CFO, explained that they expect consistent transaction growth driven by consumable categories and Neighbor's Club members. They anticipate balanced growth between ticket and transactions, with stronger comp sales in the second half compared to the first half. Q: How are you thinking about seasonal drivers in the back half, and was there any pull forward in July due to tariff concerns? A: Harry Lawton, CEO, stated that they are optimistic about a step change in comp performance in the second half, driven by favorable lapping, strong momentum in July, and positive rural America trends. There was no pull forward from July into June. Q: Was weather a net headwind in the second quarter, and how does it affect the outlook for the back half? A: Harry Lawton noted that spring started late and extended beyond usual, benefiting seasonal categories. They expect higher comps in the back half, with continued strong performance in consumable categories. Q: Can you elaborate on the inflation expectations for the second half and its impact on pricing? A: Harry Lawton mentioned that they are planning for balanced ticket and transaction growth. They have good visibility into pricing for Q3 and flexibility for Q4, with expected inflationary benefits from tariffs and consumable categories. Q: How does the Final Mile initiative impact competition with larger players like Amazon and Walmart? A: Colin Yankee, Chief Supply Chain Officer, emphasized that their Final Mile initiative is tailored for rural delivery, leveraging their store locations, inventory, and supply chain. They focus on extending legendary service to customers' properties, differentiating from other delivery providers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
7 days ago
- Business
- Yahoo
Tractor Supply Q2 beat, Valero Energy falls, Spotify upgraded
Yahoo Finance anchor Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute. Tractor Supply Company (TSCO) reported better-than-expected second quarter comparable sales and net sales. The company also reaffirmed its full-year outlook. Valero Energy (VLO) beat on second quarter earnings and revenue while seeing a decline in net income, sending the stock lower. Spotify (SPOT) was upgraded to Outperform by Oppenheimer, citing opportunity in ad user monetization. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. Sign in to access your portfolio
Yahoo
24-07-2025
- Business
- Yahoo
Tractor Supply (TSCO) Tops Q2 Earnings and Revenue Estimates
Tractor Supply (TSCO) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.25%. A quarter ago, it was expected that this retailer for farmers and ranchers would post earnings of $0.37 per share when it actually produced earnings of $0.34, delivering a surprise of -8.11%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Tractor Supply, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $4.44 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.87%. This compares to year-ago revenues of $4.25 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tractor Supply shares have added about 12.4% since the beginning of the year versus the S&P 500's gain of 8.1%. What's Next for Tractor Supply? While Tractor Supply has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tractor Supply was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $3.72 billion in revenues for the coming quarter and $2.09 on $15.63 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Arhaus, Inc. (ARHS), has yet to report results for the quarter ended June 2025. This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Arhaus, Inc.'s revenues are expected to be $335.65 million, up 8.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tractor Supply Company (TSCO) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
Tractor Supply's New Stores Fuel Strong Sales, Solid Outlook
Tractor Supply Company (NASDAQ:TSCO) shares are trading higher Thursday after the rural lifestyle retailer reported second-quarter earnings per share of 81 cents, aligning with analyst estimates. The company also beat revenue expectations, driven by new store openings and an increase in comparable store sales, and reaffirmed its full-year 2025 financial outlook. The company reported quarterly sales of $4.44 billion (+4.5% year over year) outpacing the Street view of $4.398 billion. Comparable store sales increased 1.5% year over year, while the firm saw comparable average transaction growth of 1%.Comparable store sales growth was driven by continued momentum in year-round categories, especially consumable, usable, and edible products, and solid demand for spring seasonal items. Performance was also positive in apparel, gift and décor, as well as big ticket items. These gains were partially offset by softness in select discretionary categories. Gross profit increased 5.4% year over year to $1.64 billion. The gross margin rate was 36.9%, compared to 36.6% in the prior year's second quarter, primarily due to disciplined product cost management and the continued execution of an everyday low-price strategy. View more earnings on TSCO Operating income increased 2.9% to $577.8 million from $561.5 million in the second quarter of 2024. In the second quarter of 2025, the company opened 24 new Tractor Supply stores and two new Petsense by Tractor Supply locations. During the same period, it closed one Petsense by Tractor Supply store. 'Despite external pressures, including economic uncertainty and shifting tariffs, our year-to-date performance and visibility into the remainder of the year provide a solid foundation to reaffirm our 2025 financial outlook,' said Hal Lawton, president and chief executive officer. 'With a largely U.S.-sourced assortment, strong vendor partnerships and a flexible, scalable supply chain, we are well-positioned to navigate near-term dynamics and deliver long-term value for our shareholders.' Tractor Supply exited the quarter with cash and equivalents worth $225.81 million, with inventories worth $3.09 billion. The company's long-term debt contracted to $1.67 billion, compared with $1.73 billion in the year-ago period. Outlook Tractor Supply reaffirmed its FY2025 GAAP EPS guidance at $2.00-$2.18 per share, encompassing the $2.10 consensus estimate. It also affirmed its FY2025 sales guidance of $15.478 billion to $16.074 billion versus the $15.587 billion estimate. Price Action: TSCO shares are trading higher by 4.41% to $62.25 at last check Thursday. Read Next:Photo by refrina via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? TRACTOR SUPPLY (TSCO): Free Stock Analysis Report This article Tractor Supply's New Stores Fuel Strong Sales, Solid Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
