HomeMarket NewsAnticipating Tractor Supply Company's Q4 2024 Earnings: Key Insights and Projections

Anticipating Tractor Supply Company’s Q4 2024 Earnings: Key Insights and Projections

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Tractor Supply Company Gears Up for Q4 Earnings Report

Tractor Supply Company (TSCO), a prominent retailer specializing in farm and ranch products, is preparing to unveil its Q4 earnings before the market opens on Thursday, Jan. 30. With a market cap of $28.4 billion, the Brentwood, Tennessee-based retailer serves rural lifestyle consumers through more than 1,900 stores across the United States.

Profit Expectations and Historical Performance

Analysts predict that Tractor Supply will report a profit of $0.45 per share for the quarter, a slight decline of 2.2% from the $0.46 reported during the same period last year. Notably, the company has a track record of either surpassing or meeting Wall Street’s EPS estimates for the last four quarters. In Q3, their EPS matched expectations at $0.45.

Future Projections for Fiscal 2024

Looking ahead to fiscal 2024, Tractor Supply is expected to report an adjusted EPS of $2.05, reflecting a modest increase of 1.5% from the prior year’s $2.02.

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Market Performance and Recent Challenges

Over the past year, Tractor Supply’s shares have seen an 18.9% increase, which lags behind the S&P 500’s 22.1% rise and the Consumer Discretionary Select Sector SPDR Fund’s impressive 27.4% gains during the same timeframe. A drop of over 6% in share prices followed the Q3 earnings release on Oct. 24, primarily due to lower-than-expected comparable store sales that experienced a slight decline year-over-year. Although net sales climbed 1.6% to $3.5 billion, this still fell below consensus estimates, causing concerns over overall demand.

The company’s SG&A expenses rose by 6.2% to $965.8 million, taking a toll on operating income, which decreased by 4.8% to $324.6 million. This came despite a gross margin improvement to 37.2%, leading to the adverse market reaction stemming from both unmet sales expectations and increasing costs.

Analysts’ Opinions and Price Targets

Analysts hold a cautiously optimistic view of Tractor Supply’s stock, assigning it a “Moderate Buy” rating overall. Among the 31 analysts covering the stock, 15 recommend a “Strong Buy,” one rates it a “Moderate Buy,” 13 opt for a “Hold,” one suggests a “Moderate Sell,” and one advocates a “Strong Sell.”

The average analyst price target for TSCO stands at $58.76, indicating potential for a 10.5% rise from current levels.

On the date of publication, Rashmi Kumari did not hold positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please refer to the Barchart Disclosure Policy for more details. More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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