Tractor Supply (TSCO) Tops Q4 EPS by 17c, Revenues Beat; Offers FY21 EPS Mid-Term Guidance Above Consensus, FY21 Revenues Outlook Above Consensus

January 28, 2021 6:21 AM EST

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Tractor Supply (NASDAQ: TSCO) reported Q4 EPS of $1.64, $0.17 better than the analyst estimate of $1.47. Revenue for the quarter came in at $2.88 billion versus the consensus estimate of $2.68 billion.

  • Company Achieves Record Sales and Earnings for Fiscal 2020
  • Fourth Quarter Net Sales Increased 31.3%; Fourth Quarter Comparable Store Sales Increased 27.3%
  • Fiscal Year Net Sales Increased 27.2%; Fiscal Year Comparable Store Sales Increased 23.1%
  • Company Recorded Non-Cash Pre-Tax Impairment Charges of $74.1 million, or $0.49 per diluted share after-tax, related to the Petsense Business
  • Fourth Quarter Diluted Earnings per Share (“EPS”) of $1.15 and Adjusted Diluted EPS of $1.641
  • Fiscal Year 2020 Diluted EPS of $6.38 and Adjusted Diluted EPS of $6.871
  • Company Provides Fiscal 2021 Diluted EPS Outlook of $6.50 to $6.90
  • Board of Directors Increases Quarterly Dividend by 30% to $0.52 per share

“We are incredibly proud of all the Tractor Supply team achieved in 2020 including record sales and operating performance for the year. My thanks and appreciation go out to the team for their support of each other, our customers and our longstanding commitment to the rural lifestyle. Our team remained agile in a challenging operating environment as we experienced unprecedented demand and welcomed a record number of new and reengaged customers to Tractor Supply,” said Hal Lawton, Tractor Supply’s President and Chief Executive Officer. “The team has done an exemplary job operating the business at elevated rates in the midst of a global pandemic, all while laying the foundation for our Life Out Here Strategy. Going forward, we believe our resilient business model with a differentiated and loyal customer base, our strategic investments to capture growth opportunities and the strength of our balance sheet position us to capitalize on the momentum in our business in 2021 and beyond.”

Lawton continued, “The 30% increase in our quarterly dividend by the Board of Directors and our recently resumed share repurchase program reflect our strong earnings performance and robust cash flows in 2020 and confidence in our business, as well as our ongoing commitment to total shareholder return.”

GUIDANCE:

Tractor Supply sees FY2021 EPS of $6.50-$6.90, versus the consensus of $6.52. Tractor Supply sees FY2021 revenue of $10.7-11 billion, versus the consensus of $10.53 billion.

  • The impact that the COVID-19 pandemic will have on the broader economy and the Company’s fiscal 2021 results remains uncertain. Given the nature of the COVID-19 pandemic on the macro economy and the consumer, the Company is planning for fiscal 2021 based on a range of potential outcomes
  • The Company’s diluted EPS guidance assumes an estimated effective income tax rate of 22.5% to 22.8%.
  • Share repurchases for fiscal 2021 are expected to reduce diluted weighted average shares outstanding by one to two percent. Anticipated capital expenditures include new store growth of approximately 80 new Tractor Supply and 10 new Petsense store openings.
  • The Company continues to have a strong liquidity position with current cash and cash equivalents of approximately $1.34 billion and no amounts drawn on its $500 million revolving credit facility as of December 26, 2020.

For earnings history and earnings-related data on Tractor Supply (TSCO) click here.



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