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Here's Why Tractor Supply (TSCO) is Poised for Q1 Earnings Beat
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Tractor Supply Company (TSCO - Free Report) is likely to register increases in the top and bottom lines when it reports first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.3 billion, indicating growth of 9.2% from the prior-year reported figure.
The bottom line of the largest rural lifestyle retailer in the United States is expected to have increased year over year. The Zacks Consensus Estimate for earnings per share for the first quarter has moved down by a penny in the past 30 days. The figure suggests growth of 2.4% from the year-ago period’s reported figure.
We expect the company’s first-quarter total revenues to increase 8.9% year over year to $3,294.4 million and the bottom line to grow 1.5% to $1.67 per share.
Tractor Supply has a trailing four-quarter earnings surprise of 3.9%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings surpassed the Zacks Consensus Estimate by 5.6%.
Tractor Supply has been benefiting from continued market share growth and progress on its strategic initiatives. Moreover, it benefited from its Life Out Here Strategy, Neighbor’s Club membership program and healthy product demand. The strategy is essentially based on five key pillars, including customers, digitization, execution, team members and total shareholder return.
Earlier, the company launched the Field Activity Support Team (“FAST”) and implemented various technology and service enhancements across the enterprise. It has also been in the initial phase of transforming its side lots and mature stores to improve space productivity, bringing the latest merchandising strategies to life and advancing efforts to remain nationally strong and locally relevant.
Given the changing consumer trends, Tractor Supply has been focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. Incidentally, the company has been on track with the ‘ONETractor’ strategy aimed at connecting store and online shopping. The company’s omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app. Gains from these efforts are expected to have led to strong e-commerce growth in the to-be-reported quarter.
The company’s rebranding of Petsense by Tractor Supply and the expansion of its Neighbor's Club program to Petsense stores received positive customer feedback. This move will enable it to gain pet customers for both banners.
Tractor Supply has been on track with the Project Fusion remodels and Side Lot transformation to remain nationally strong and locally relevant by bringing the latest merchandising strategies to life. These have been significant investments toward stores and are expected to have boosted productivity across the existing and new stores.
However, Tractor Supply has been reeling under inflation woes and rising costs. Higher costs due to elevated transaction expenses and early integration costs related to the Orscheln Farm and Home acquisition are likely to have been concerning.
Investments in strategic efforts, and team member compensation and benefits are also expected to have added to high costs. Transportation costs are likely to have continued to be higher year over year in the first quarter of 2023.
What the Zacks Model Unveils
Our proven conclusively predicts an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of +0.30%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that have the right combination of elements to post an earnings beat:
Asbury Automotive Group (ABG - Free Report) has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, suggesting a 6.1% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ABG has delivered an earnings beat of 7.1%, on average, in the trailing four quarters.
Lowe’s Companies (LOW - Free Report) currently has an Earnings ESP of 1.32% and a Zacks Rank of 3. The company is expected to register a top-line decline when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $21.9 billion, which suggests a decline of 7.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has been unchanged at $3.54 in the past 30 days. However, the consensus estimate for loss suggests an improvement of 0.9% from the year-ago quarter’s reported figure of $3.51 per share. LOW has delivered a bottom-line miss of 4.4%, on average, in the trailing four quarters.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +1.38% and a Zacks Rank #3. TGT is anticipated to register top-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.4 billion, indicating an improvement of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s earnings of $1.77 per share has moved up by a penny in the past 30 days. The consensus estimate suggests a decline of 19.2% from the $1.77 reported in the year-ago quarter. TGT has delivered an earnings miss of 16.1%, on average, in the trailing four quarters.
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Here's Why Tractor Supply (TSCO) is Poised for Q1 Earnings Beat
Tractor Supply Company (TSCO - Free Report) is likely to register increases in the top and bottom lines when it reports first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.3 billion, indicating growth of 9.2% from the prior-year reported figure.
The bottom line of the largest rural lifestyle retailer in the United States is expected to have increased year over year. The Zacks Consensus Estimate for earnings per share for the first quarter has moved down by a penny in the past 30 days. The figure suggests growth of 2.4% from the year-ago period’s reported figure.
We expect the company’s first-quarter total revenues to increase 8.9% year over year to $3,294.4 million and the bottom line to grow 1.5% to $1.67 per share.
Tractor Supply has a trailing four-quarter earnings surprise of 3.9%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings surpassed the Zacks Consensus Estimate by 5.6%.
Tractor Supply Company Price and EPS Surprise
Tractor Supply Company price-eps-surprise | Tractor Supply Company Quote
Key Factors to Note
Tractor Supply has been benefiting from continued market share growth and progress on its strategic initiatives. Moreover, it benefited from its Life Out Here Strategy, Neighbor’s Club membership program and healthy product demand. The strategy is essentially based on five key pillars, including customers, digitization, execution, team members and total shareholder return.
Earlier, the company launched the Field Activity Support Team (“FAST”) and implemented various technology and service enhancements across the enterprise. It has also been in the initial phase of transforming its side lots and mature stores to improve space productivity, bringing the latest merchandising strategies to life and advancing efforts to remain nationally strong and locally relevant.
Given the changing consumer trends, Tractor Supply has been focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. Incidentally, the company has been on track with the ‘ONETractor’ strategy aimed at connecting store and online shopping. The company’s omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app. Gains from these efforts are expected to have led to strong e-commerce growth in the to-be-reported quarter.
The company’s rebranding of Petsense by Tractor Supply and the expansion of its Neighbor's Club program to Petsense stores received positive customer feedback. This move will enable it to gain pet customers for both banners.
Tractor Supply has been on track with the Project Fusion remodels and Side Lot transformation to remain nationally strong and locally relevant by bringing the latest merchandising strategies to life. These have been significant investments toward stores and are expected to have boosted productivity across the existing and new stores.
However, Tractor Supply has been reeling under inflation woes and rising costs. Higher costs due to elevated transaction expenses and early integration costs related to the Orscheln Farm and Home acquisition are likely to have been concerning.
Investments in strategic efforts, and team member compensation and benefits are also expected to have added to high costs. Transportation costs are likely to have continued to be higher year over year in the first quarter of 2023.
What the Zacks Model Unveils
Our proven conclusively predicts an earnings beat for Tractor Supply this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of +0.30%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that have the right combination of elements to post an earnings beat:
Asbury Automotive Group (ABG - Free Report) has an Earnings ESP of +1.39% and currently flaunts a Zacks Rank #1. ABG is likely to register top and bottom-line declines when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, suggesting a 6.1% decline from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ABG’s fiscal first-quarter earnings is pegged at $7.94, suggesting a 14.4% decline from the $9.27 reported in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ABG has delivered an earnings beat of 7.1%, on average, in the trailing four quarters.
Lowe’s Companies (LOW - Free Report) currently has an Earnings ESP of 1.32% and a Zacks Rank of 3. The company is expected to register a top-line decline when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $21.9 billion, which suggests a decline of 7.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has been unchanged at $3.54 in the past 30 days. However, the consensus estimate for loss suggests an improvement of 0.9% from the year-ago quarter’s reported figure of $3.51 per share. LOW has delivered a bottom-line miss of 4.4%, on average, in the trailing four quarters.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +1.38% and a Zacks Rank #3. TGT is anticipated to register top-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.4 billion, indicating an improvement of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Target’s earnings of $1.77 per share has moved up by a penny in the past 30 days. The consensus estimate suggests a decline of 19.2% from the $1.77 reported in the year-ago quarter. TGT has delivered an earnings miss of 16.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.