On Monday, Benchmark reiterated its Buy rating on Tractor Supply Company (NASDAQ:TSCO) shares with a continued price target of $280.00. The firm anticipates Tractor Supply to report a strong third quarter for the fiscal year 2024 before the market opens on October 24, 2024. Following the release, management is scheduled to host a conference call at 10:00 am ET.
The analyst from Benchmark forecasts an earnings per share (EPS) of $2.21 for the quarter, which is a slight decrease from the $2.33 reported in the same quarter of the previous year. This expected dip in EPS is attributed to the effects of Hurricane Helene, which caused destruction over a several hundred-mile path in several Southern states.
Despite the impact of the hurricane, Tractor Supply has a notable history of effectively partnering with suppliers to deliver storm-related products such as generators, extension cords, pumps, flashlights, chainsaws, and tarps to the affected regions. The company's geographical expansion has reportedly helped in reducing the impact of any single storm on its operations.
The analyst highlighted the company's resilience and adaptability in dealing with natural disasters, suggesting that the extensive reach of Hurricane Helene will likely influence emergency response activity well into the fiscal year 2025. Based on these considerations, Benchmark continues to recommend the purchase of Tractor Supply shares.
In other recent news, Tractor Supply Company has been the subject of multiple analyst adjustments. DA Davidson confirmed its Buy rating and $300.00 price target, citing a positive shift in industry data and improved store sales.
The firm also raised its comp estimate for Tractor Supply's performance to +1.5%. Other firms such as Telsey Advisory Group, Baird, and Piper Sandler have also raised their price targets, maintaining positive ratings due to the company's strong execution and strategic initiatives. However, Evercore ISI maintained an In Line rating, advising investors to wait for a more attractive entry point.
Tractor Supply's Q2 2024 earnings report showed a 2.6% year-over-year increase in earnings per share to $3.93, while comparable store sales recorded a slight decrease of 0.5%. The company updated its full-year 2024 earnings per share guidance to a range of $10.00-$10.40.
In addition, Tractor Supply has expanded its operations, launching 21 new stores and three Petsense locations, and reporting double-digit growth in digital sales. These are recent developments for Tractor Supply Company.
InvestingPro Insights
Tractor Supply Company's resilience in the face of natural disasters, as highlighted in the article, is further supported by InvestingPro data and tips. The company's market cap stands at $32.1 billion, reflecting its significant presence in the retail sector. An InvestingPro Tip notes that Tractor Supply has maintained dividend payments for 15 consecutive years, demonstrating financial stability even during challenging times.
The company's ability to adapt to various market conditions is evident in its strong financial performance. Tractor Supply boasts a high return over the last year, with a 1-year price total return of 55.15%. This aligns with the analyst's positive outlook and Buy rating. Moreover, the company's revenue for the last twelve months as of Q2 2024 was $14.71 billion, indicating a robust business model capable of weathering storms both literal and figurative.
Another InvestingPro Tip reveals that Tractor Supply operates with a moderate level of debt, which could be advantageous in maintaining flexibility during unexpected events like Hurricane Helene. This financial prudence, combined with the company's proven ability to respond effectively to natural disasters, supports Benchmark's optimistic stance on Tractor Supply's future performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Tractor Supply's investment potential.
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