Tractor Supply (TSCO) Misses Q4 EPS by 2c, Revenues Miss; Offers FY20 EPS/Revenue Guidance Below Consensus

Tractor Supply (NASDAQ: TSCO) reported Q4 EPS of $1.21, $0.02 worse than the analyst estimate of $1.23. Revenue for the quarter came in at $2.19 billion versus the consensus estimate of $2.24 billion.

• Fourth Quarter Net Sales Increased 2.7%; Fourth Quarter Comparable Store Sales Increased 0.1% on top of 5.7% comparable store sales growth in the same period last year
• Fiscal Year Net Sales Increased 5.6%; Fiscal Year Comparable Store Sales Increased 2.7%
• Fourth Quarter Diluted Earnings per Share (“EPS”) Increased 9.0% to $1.21; Fiscal Year Diluted EPS of $4.66 and Adjusted Diluted EPS of $4.681
• $696.0 Million of Capital Returned to Shareholders Through Share Repurchases and Quarterly Cash Dividends in Fiscal 2019
• Company Provides Fiscal 2020 Diluted EPS Outlook of $4.90 to $5.10

Greg Sandfort, Tractor Supply’s Strategic Advisor and retired Chief Executive Officer, effective January 13, 2020, commented, “Overall, 2019 was a solid year for the Tractor Supply team as we achieved record revenue and net income. While our comparable store sales performance for the fourth quarter was below our expectations, the weakness was driven principally by the effect of a period of warmer than expected weather impacting the sales of seasonal products and softness in several holiday discretionary categories. Despite the sales trends in the quarter, the Tractor Supply team executed well, controlling what we could control. This performance resulted in earnings per share in line with our guidance range as the team delivered gross margin expansion accompanied with disciplined cost management. I am optimistic about the future of Tractor Supply and where Hal and the team will lead the Company in the future.”

Hal Lawton, who was named Tractor Supply’s President and Chief Executive Officer, effective January 13, 2020, said, “I would like to thank Greg for his outstanding leadership and dedication to Tractor Supply over the last 12 years. As we move into 2020 and beyond, Tractor Supply is well positioned to build on our strengths, and I am excited about our opportunities for growth. At Tractor Supply, we have a differentiated customer experience, a robust set of competencies, and are well positioned to become an even more integral part of our customers’ lives. In the coming weeks and months, I will be focused on listening and learning from Tractor Supply team members and working with the leadership team to position Tractor Supply for continued long-term success.”

GUIDANCE:

Tractor Supply sees FY2020 EPS of $4.90-$5.10, versus the consensus of $5.21. Tractor Supply sees FY2020 revenue of $8.75-8.9 billion, versus the consensus of $8.96 billion.

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

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