Tractor Supply Posts Q4 Sales In Line, Stock Dips
Company Overview:
Tractor Supply (TSCO) is a specialty retailer focused on agricultural supplies, hardware, and pet food for rural consumers. With a strong brand presence, the company has expanded its reach through store openings and increased its digital sales.
Q4 CY2024 Highlights:
* Revenue: $3.77 billion (3.1% YoY growth), meeting analyst estimates
* EPS (GAAP): $0.44 vs. consensus of $0.45 (-3.3%)
* Same-Store Sales: Flat YoY
* Adjusted EBITDA: $438.4 million ($445.7 million estimate)
* EPS (GAAP) guidance for FY2025: $2.16, missing estimates by 2.2%
Key Metrics:
* Locations: 2,502 (-4.2% SSG in Q4)
* Operating Margin: 8.4%
* Free Cash Flow Margin: 7.2%
* Market Capitalization: $30.53 billion
Growth Trajectory:
Over the past five years, Tractor Supply has grown its sales at a compound annual rate of 12.2%. Analysts expect a 4.8% revenue increase over the next 12 months. This growth potential aligns with the company's scale and brand recognition.
Store Performance:
Tractor Supply has rapidly expanded its store count, with a 5.3% annual growth rate. However, its same-store sales have been relatively flat. This suggests the company should prioritize foot traffic improvement and operational efficiency before further expansion.
Outlook:
While Tractor Supply's Q4 results fell short of expectations, the stock's dip may present a buying opportunity. The company remains a strong player in the rural market with a focus on quality and customer service.
Full Research Report:
For a comprehensive analysis of Tractor Supply, including valuation insights and investment recommendations, please refer to our full research report here: [Report Link]