The 10-second takeaway
For the quarter ended March 31 (Q1), Tractor Supply beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins improved, and net margins increased.
Tractor Supply logged revenue of $1.02 billion. The one analyst polled by S&P Capital IQ foresaw a top line of $1.00 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $836.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.55 per share. GAAP EPS of $0.55 for Q1 were 129% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.6%, 10 basis points worse than the prior-year quarter. Operating margin was 6.3%, 290 basis points better than the prior-year quarter. Net margin was 4.0%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $4.70 billion. The average EPS estimate is $3.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 344 members out of 378 rating the stock outperform, and 34 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Tractor Supply a green thumbs-up, and five 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 $90.85.
If you're invested in retailers like Tractor Supply, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Tractor Supply to My Watchlist.
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.