The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Tractor Supply met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins increased across the board.
Tractor Supply tallied revenue of $1.29 billion. The 22 analysts polled by S&P Capital IQ looked for a top line of $1.28 billion on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $1.24 billion.
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 $1.11. The 23 earnings estimates compiled by S&P Capital IQ forecast $1.03 per share. GAAP EPS of $1.11 for Q4 were 16% higher than the prior-year quarter's $0.96 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 33.0%, 50 basis points better than the prior-year quarter. Operating margin was 9.7%, 70 basis points better than the prior-year quarter. Net margin was 6.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $5.14 billion. The average EPS estimate is $4.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 341 members out of 378 rating the stock outperform, and 37 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give Tractor Supply a green thumbs-up, and nine 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 $103.66.
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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. The Motley Fool owns shares of Tesco. 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.