On Thursday, Feb. 1, rural farm and ranch supply retailer Tractor Supply Company
- Sales grew 5.3% to $629.9 million. Same-store sales grew an uninspiring 0.5% versus a stellar 10% gain in last year's quarter.
- Total diluted earnings fell 4%, as higher gross margins weren't enough to offset higher advertising expenses and stock option expenses of $0.04 per share.
- Inventory jumped 28.8%, as "sales were weaker than expected primarily due to unseasonably warm weather in the northern regions of the country, which resulted in decreased demand for winter related merchandise and lower store traffic."
- Management expects 2007 sales of $2.7 billion-$2.74 billion and diluted earnings of $2.45-$2.52 per share.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$629,899 |
$597,934 |
5.3% |
Net Profit |
$29,497 |
$30,902 |
(4.5%) |
EPS |
$0.72 |
$0.75 |
(4.0%) |
Diluted Shares |
41,118 |
41,182 |
(0.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
32.6% |
31.9% |
0.7 |
Operating Margin |
7.7% |
8.3% |
(0.6) |
Net Margin |
4.7% |
5.2% |
(0.5) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$37,605 |
$21,203 |
77.4% |
Inventory |
$593,373 |
$460,751 |
28.8% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$238,905 |
$185,397 |
28.9% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools will have to wait until the 10-Q is filed for juicy cash flow details.
Find out why Fools always follow the money.
Comparable companies:
-
Wal-Mart
(NYSE:WMT) -
Sears
(NASDAQ:SHLD) -
Home Depot
(NYSE:HD) -
Lowe's
(NYSE:LOW) -
PetSmart
(NASDAQ:PETM)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: The Cash Flow Statement
Wal-Mart and Home Depot are Inside Value picks. PetSmart is a Stock Advisor selection.
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, Home Depot, and Petsmart but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.