The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tractor Supply beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, and net margins grew.
Tractor Supply logged revenue of $1.24 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $1.19 billion. Sales were 20% higher than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.96. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.96 for Q4 were 43% higher than the prior-year quarter's $0.67 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 10 basis points worse than the prior-year quarter. Operating margin was 9.0%, 130 basis points better than the prior-year quarter. Net margin was 5.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $921.6 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $4.64 billion. The average EPS estimate is $3.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 302 members rating the stock outperform, and 32 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Tractor Supply a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tractor Supply is outperform, with an average price target of $75.90.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.