Tractor Supply Company (TSCO Quick QuoteTSCO - Free Report) is likely to register an increase in the top line when it reports second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.40 billion, indicating a 3.6% jump from the year-ago figure.

The bottom line of the leading rural lifestyle retailer in the United States is expected to have risen year over year. The Zacks Consensus Estimate for earnings per share has been unchanged at 80 cents in the past 30 days, indicating a 1.3% rise from the year-ago period’s figure. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Tractor Supply has a negative trailing four-quarter earnings surprise of 2.5%, on average. In the last reported quarter, this Brentwood, TN-based company’s earnings missed the Zacks Consensus Estimate by 8.1%.

Key Factors Likely to Impact TSCO’s Q2 Results

Tractor Supply’s quarterly performance is likely to have benefited from sturdy demand and strong market share gains. The company has been gaining from demand for its core merchandise, including consumable, usable and edible products. TSCO’s emphasis on tailoring its product offerings to suit the daily needs of rural customers has been a key driver of its success. Such factors, coupled with the execution of its everyday low-price strategy, are expected to have bolstered its performance in the quarter under review.

TSCO’s ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping, appears encouraging. The company has been benefiting from its Life Out Here Strategy and the Neighbor’s Club membership program, which are likely to have driven its sales. It continues to expand its competitive moat by gaining market share across its key product categories and maintaining healthy customer engagement metrics.

In its first-quarter earnings call, management had expected net sales growth of about 3-4%, comparable store sales to range from flat to up 1% and earnings per share between $0.79 and $0.81 for the second quarter of 2025.

However, higher depreciation and amortization costs, expenses from opening a distribution center and cost inflation are likely to have been concerns. Growth investments and deleveraged fixed costs are also expected to have driven SG&A expenses. Our model indicates a 5.1% year-over-year increase in SG&A expenses for the second quarter, with the SG&A expense rate rising 30 basis points to 25.3%. Depreciation and amortization expenses are expected to increase 21.2% year over year.

What the Zacks Model Unveils for TSCO?

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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Tractor Supply has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.

Valuation & Price Performance of TSCO Stock

From a valuation perspective, Tractor Supply stock trades at a premium relative to the Retail - Miscellaneous industry. The company has a forward 12-month price-to-earnings ratio of 25.34X, above the industry’s average of 17.96X. However, the stock trades below the historical benchmarks, with a five-year high of 27.91X.

TSCO shares have gained 11.7% in the past three months compared with the industry's 23.6% growth.

Stocks Poised to Beat Earnings Estimates

Here are a few companies that have the right combination of elements to post an earnings beat this time around:

Kohl’s Corporation (KSS Quick QuoteKSS - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $3.5 billion, which indicates a decline of 6.7% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kohl’s quarterly earnings per share of 33 cents implies a 44.1% decrease from the year-ago quarter. The consensus mark has remained stable in the past 30 days. KSS has a trailing four-quarter earnings surprise of 18.8%, on average.

Chewy (CHWY Quick QuoteCHWY - Free Report) has an Earnings ESP of +0.09% and currently has a Zacks Rank of 3. CHWY is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.1 billion, indicating a 7.8% increase from the figure reported in the year-ago quarter.

The consensus estimate for CHWY’s fiscal second-quarter earnings is pegged at 33 cents a share, up 37.5% from the year-ago quarter. The consensus mark has been unchanged in the past 30 days. CHWY has delivered an earnings beat of 8.1%, on average, in the trailing four quarters.

lululemon athletica (LULU Quick QuoteLULU - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.5 billion, indicating 7.1% growth from the figure reported in the year-ago quarter.

The consensus estimate for LULU’s second-quarter earnings is pegged at $2.87 a share, implying an 8.9% decrease from the year-earlier quarter. The consensus mark has dipped 1.4% in the past 30 days.