Tractor Supply’s Earnings Were in Line with Expectations



Tractor Supply’s 4Q15 earnings

Tractor Supply (TSCO) released its 4Q15 earnings on January 27, 2015. Adjusted EPS (earnings per share) was $0.82, which was in line with expectations. Full-year adjusted EPS increased by 12.8%. Sales increased by 3.9% in the quarter, which was impacted by a decrease in growth of comparable sales by 1.4%.

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12-month return

Tractor Supply (TSCO) investors have been investing in the growth potential of the company. The stock has proved itself historically. As you can see from the above graph, Tractor Supply (TSCO) has beaten the S&P 500 (SPY) and the consumer discretionary sector (XLY) by quite a margin over the last year.

The company’s one-year total return has been 6.4%, which is quite high compared to its closest peers such as Lowe’s (LOW). Lowe’s had a total return of 2.0% over the period, whereas Williams-Sonoma (WSM) and Restoration Hardware (RH) had negative returns of 35.1% and -32.5%, respectively.

Company overview

Tractor Supply (TSCO) operates as a specialist in rural lifestyle retail stores in the United States. The company operates in a niche market, supplying the needs of recreational farmers and ranchers as well as tradesmen and other small businesses. It operates its business through 1,488 stores as of December 26, 2015, in 49 states under the names Tractor Supply Company, Del’s Feed and Farm Supply, and HomeTown Pet.

In the next article, we’ll take a look at the company’s top-line sales performance.


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