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Things to Know Ahead of Tractor Supply's (TSCO) Q3 Earnings
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Tractor Supply Company (TSCO - Free Report) is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results on Oct 26, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.5 billion, indicating 6.3% growth 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. However, the Zacks Consensus Estimate for earnings per share for the third quarter has moved down 0.9% to $2.27 in the past seven days. However, the figure suggests growth of 8.1% from the year-ago period’s reported figure.
Tractor Supply has a trailing four-quarter negative earnings surprise of 0.02%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 2.1%.
Tractor Supply has been gaining from the sturdy demand for core year-round merchandise, including consumable, usable and edible products. Also, the acquisition of Orscheln Farm and Home, store openings, and comparable store sales growth bode well.
The company has been on track to build up on its Out Here lifestyle assortment and convenient shopping format to gain customers and market share. The strategy is essentially based on five key pillars, which include customers, digitization, execution, team members, and total shareholder return. TSCO’s Neighbor's Club loyalty program is also likely to have driven its sales in the to-be-reported quarter. We anticipate Tractor Supply’s comparable store sales to increase 2.8% in the third quarter.
The company has been on track with the ‘ONETractor’ strategy to connect stores and online shopping. Its omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app. Earlier, it launched the Tractor Supply Visa Credit Card, which allows customers to earn points on their everyday purchases, both in-store and anywhere Visa is accepted. 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 persistently been focusing on its growth initiatives, which include the expansion of its store base and the incorporation of technological advancements to induce traffic and drive the top line. The company’s Project Fusion and Side Lot model transformations have been significant investments toward stores. These store investments target achieving higher market share, and boosting productivity across the existing and new stores.
However, Tractor Supply has been reeling under muted consumer spending from cost inflation, which is likely to affect the third-quarter performance. Also, higher depreciation and amortization, and the opening of a distribution center are likely to have acted as deterrents. Our model indicates a 7.9% increase in SG&A expenses on a year-over-year basis.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of -1.10%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies that have the right combination of elements to post an earnings beat:
ABG is likely to register top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.7 billion, suggesting a 6.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal third-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the year-ago reported figure. The consensus estimate for earnings has declined 2% in the past 30 days. ABG has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.
Lowe’s Companies (LOW - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank #3. The company is expected to register a top-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $25 billion, which suggests a decline of 9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has increased 0.9% to $4.49 in the past 30 days. However, the consensus estimate for earnings suggests a decline of 3.9% from the year-ago quarter’s reported figure. LOW has delivered a bottom-line beat of 3.7%, on average, in the trailing four quarters.
Arhaus, Inc. (ARHS - Free Report) has an Earnings ESP of +7.69% and currently sports a Zacks Rank #1. ARHS is likely to register top-line growth when it reports third-quarter fiscal 2023, while its bottom line is expected to decline year over year. The Zacks Consensus Estimate for its quarterly revenues is pegged at $325.7 million, suggesting 6.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ARHS’ fiscal third-quarter earnings is pegged at 26 cents, suggesting a 7.1% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ARHS has delivered an earnings beat of 82.4%, on average, in the trailing four quarters.
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Things to Know Ahead of Tractor Supply's (TSCO) Q3 Earnings
Tractor Supply Company (TSCO - Free Report) is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results on Oct 26, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.5 billion, indicating 6.3% growth 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. However, the Zacks Consensus Estimate for earnings per share for the third quarter has moved down 0.9% to $2.27 in the past seven days. However, the figure suggests growth of 8.1% from the year-ago period’s reported figure.
Tractor Supply has a trailing four-quarter negative earnings surprise of 0.02%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 2.1%.
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 gaining from the sturdy demand for core year-round merchandise, including consumable, usable and edible products. Also, the acquisition of Orscheln Farm and Home, store openings, and comparable store sales growth bode well.
The company has been on track to build up on its Out Here lifestyle assortment and convenient shopping format to gain customers and market share. The strategy is essentially based on five key pillars, which include customers, digitization, execution, team members, and total shareholder return. TSCO’s Neighbor's Club loyalty program is also likely to have driven its sales in the to-be-reported quarter. We anticipate Tractor Supply’s comparable store sales to increase 2.8% in the third quarter.
The company has been on track with the ‘ONETractor’ strategy to connect stores and online shopping. Its omni-channel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app. Earlier, it launched the Tractor Supply Visa Credit Card, which allows customers to earn points on their everyday purchases, both in-store and anywhere Visa is accepted. 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 persistently been focusing on its growth initiatives, which include the expansion of its store base and the incorporation of technological advancements to induce traffic and drive the top line. The company’s Project Fusion and Side Lot model transformations have been significant investments toward stores. These store investments target achieving higher market share, and boosting productivity across the existing and new stores.
However, Tractor Supply has been reeling under muted consumer spending from cost inflation, which is likely to affect the third-quarter performance. Also, higher depreciation and amortization, and the opening of a distribution center are likely to have acted as deterrents. Our model indicates a 7.9% increase in SG&A expenses on a year-over-year basis.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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.
Tractor Supply has a Zacks Rank #3 and an Earnings ESP of -1.10%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies that have the right combination of elements to post an earnings beat:
Asbury Automotive Group (ABG - Free Report) currently has an Earnings ESP of +9.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ABG is likely to register top and bottom-line declines when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.7 billion, suggesting a 6.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal third-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the year-ago reported figure. The consensus estimate for earnings has declined 2% in the past 30 days. ABG has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.
Lowe’s Companies (LOW - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank #3. The company is expected to register a top-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LOW’s quarterly revenues is pegged at $25 billion, which suggests a decline of 9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Lowe’s earnings has increased 0.9% to $4.49 in the past 30 days. However, the consensus estimate for earnings suggests a decline of 3.9% from the year-ago quarter’s reported figure. LOW has delivered a bottom-line beat of 3.7%, on average, in the trailing four quarters.
Arhaus, Inc. (ARHS - Free Report) has an Earnings ESP of +7.69% and currently sports a Zacks Rank #1. ARHS is likely to register top-line growth when it reports third-quarter fiscal 2023, while its bottom line is expected to decline year over year. The Zacks Consensus Estimate for its quarterly revenues is pegged at $325.7 million, suggesting 6.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ARHS’ fiscal third-quarter earnings is pegged at 26 cents, suggesting a 7.1% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. ARHS has delivered an earnings beat of 82.4%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.