What Happened?
Shares of rural goods retailer Tractor Supply (NASDAQ:TSCO) jumped 3.6% in the morning session after the company reported second-quarter financial results that beat revenue expectations and reaffirmed its full-year outlook.
The rural lifestyle retailer announced net sales grew 4.5% year-over-year to $4.44 billion, topping analyst forecasts of $4.40 billion. Diluted earnings per share of $0.81 met expectations. The positive results were driven by a 1.5% increase in comparable store sales, which benefited from growth in both transaction count and average ticket size. Management expressed satisfaction with the quarter's performance, highlighting market share gains and solid execution. The company also reaffirmed its financial guidance for the fiscal year 2025, signaling confidence in its continued momentum.
After the initial pop the shares cooled down to $60.35, up 1.2% from previous close.
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What Is The Market Telling Us
Tractor Supply’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 5.9% on the news that he company reported weak first-quarter 2025 results, as both its full-year revenue and EPS guidance fell short of analysts' expectations. Comparable store sales declined 0.9%, with transaction volume rising 2.1% but average ticket size falling 2.9%, pointing to cautious consumer spending and pressure on higher-priced discretionary items. Management cited tariff uncertainty as a key factors in lowering the outlook. Overall, this was a weaker quarter.
Tractor Supply is up 15.2% since the beginning of the year, and at $60.35 per share, it is trading close to its 52-week high of $60.75 from October 2024. Investors who bought $1,000 worth of Tractor Supply’s shares 5 years ago would now be looking at an investment worth $2,059.
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