Factors Influencing Tractor Supply's (TSCO) Q1 Earnings

Tractor Supply Company TSCO is slated to report first-quarter 2020 results on Apr 23, before the opening bell. Further, its earnings outperformed the Zacks Consensus Estimate by 2.6%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 70 cents, suggesting an increase of 11.1% from the year-ago period’s reported figure. Notably, the consensus mark has gone up by 7 cents over the past 30 days.

Factors to Note

Tractor Supply has been keen on serving its customers with everyday essentials amid the spread of the coronavirus pandemic. It is likely to have reaped benefits from enhanced delivery facilities, such as additional mobile point-of-sale (PoS) technology, contactless curbside delivery, same day/next day delivery facilities and dedicated parking for Buy Online, Pickup In Store (BOPIS).

In its preliminary results, reported on Apr 7, management highlighted that first-quarter sales rose 7.5% to $1.96 billion, beating the Zacks Consensus Estimate of $1.95 billion. Also, comparable store sales improved 4.3% compared with growth of 5% in the prior-year quarter. Encouragingly, management envisions adjusted earnings for the first quarter to be 69-71 cents.

Moreover, the company highlighted that it witnessed solid sales in March, with comparable store sales improvement of 12%, driven by robust growth in key consumable categories. The e-commerce business also performed well in March.

Despite such upsides, persistent softness in discretionary categories, including clothing, footwear, toys and gift items, remains a concern. Apart from this, uncertain COVID-19 impacts might hurt some aspects of the company’s to-be-reported results.

Tractor Supply Company Price and EPS Surprise

Tractor Supply Company Price and EPS Surprise

 

Tractor Supply Company price-eps-surprise | Tractor Supply Company Quote

What the Zacks Model Unveils

Our proven model doesn’t 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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tractor Supply carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Sprout Farmers Market, Inc. SFM currently has an Earnings ESP of +21.28% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Walmart Inc. WMT currently has an Earnings ESP of +5.52% and a Zacks Rank #3.

Builders FirstSource, Inc. BLDR presently has an Earnings ESP of +9.16% and a Zacks Rank #3.

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