Tractor Supply out of Its Rut: Fool by Numbers
By Ryan Fuhrmann, CFA
April 26, 2007
Recommended (4)
On April 25, after the market closed, rural farm and ranch supply retailer Tractor Supply (Nasdaq: TSCO) released results for the first quarter ended March 31. Here are the quick and dirty details.
- Net sales grew 20.3%, as same-store sales improved a nice 8.5%, with cold weather helping a retailer for a change.
- Profitability jumped significantly in what is customarily a slow quarter for the company. Next quarter is a seasonally strong period.
- Management is calling for 2007 sales of $2.7 billion to $2.75 billion and diluted net earnings of $2.49 to $2.56.
- Tractor Supply carries a three-star rating in Motley Fool's CAPS community. Big-box competitors Lowe's (NYSE: LOW) and Inside Value recommendation Home Depot (NYSE: HD) are rated three stars and two stars, respectively.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$559,832
|
$465,547
|
20.3%
|
|
Net Profit
|
$4,999
|
$525
|
852.2%
|
|
EPS
|
$0.12
|
$0.01
|
1,100.0%
|
|
Diluted Shares
|
41,083
|
41,016
|
0.2%
|
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
30.0%
|
30.5%
|
(0.5)
|
|
Operating Margin
|
1.4%
|
0.2%
|
1.2
|
|
Net Margin
|
0.9%
|
0.1%
|
0.8
|
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$35,786
|
$39,621
|
(9.7%)
|
|
Inventory
|
$722,928
|
$625,015
|
15.7%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$336,280
|
$313,112
|
7.4%
|
|
Long-Term Debt
|
$53,418
|
$64,702
|
(17.4%)
|
The balance sheet reflects the company's health.
Cash Flow Highlights
Fools will have to wait until Tractor Supply supplies its quarterly report to the SEC for juicy cash flow details.
Find out why free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann is long shares of Tractor Supply but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
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