On Monday, Tractor Supply Company (NASDAQ:TSCO) received a stock price target increase from Benchmark, following the retailer's recent earnings release. The new price target is set at $310.00, up from the previous $280.00, while the firm maintains a Buy rating on the stock.
Tractor Supply reported its third-quarter earnings late last week, posting figures that fell slightly short of sales expectations but exceeded earnings estimates by $0.03. In response to the company's performance, Benchmark adjusted its 2024 earnings estimate to $10.34 and set its 2025 estimate at $11.15.
Alongside the earnings report, Tractor Supply's management adjusted the lower end of its 2024 earnings guidance, raising it by $0.10 to a range of $10.10 to $10.40. Additionally, the company announced the acquisition of Allivet, a leading online pet pharmacy, signaling an expansion of its offerings in the pet care sector.
Benchmark's updated price target reflects a positive outlook on Tractor Supply's shares, with the analyst endorsing the purchase of TSCO shares. The raised target is attributed to the company's latest financial results and strategic moves, including the earnings beat and the Allivet acquisition.
In other recent news, Tractor Supply Company has demonstrated a resilient financial performance despite economic challenges. The company reported a slight increase in net sales and a diluted EPS of $2.24 in its Q3 2024 Earnings Call.
Furthermore, Tractor Supply raised its fiscal 2024 sales and earnings guidance, projecting net sales between $14.85 billion and $15 billion, and a diluted EPS between $10.10 and $10.40.
In terms of recent developments, Tractor Supply announced the acquisition of online pet pharmacy Allivet, a move expected to positively impact the company's 2025 earnings. The company also plans to open 90 new stores in 2025, and its Neighbor's Club membership has grown to over 37 million members.
Analysts have been closely monitoring Tractor Supply's performance. TD Cowen maintained a Hold rating on the company's shares, while UBS and Barclays adjusted their price targets for Tractor Supply. Despite a slight dip in comparable-store sales, these firms continue to show confidence in the company's ability to navigate market challenges and deliver growth.
InvestingPro Insights
Tractor Supply Company's recent performance and strategic moves have caught the attention of analysts, and InvestingPro data provides additional context to the company's financial health. As of the last twelve months ending Q3 2024, Tractor Supply reported a revenue of $14.77 billion, with a slight revenue growth of 1.65% in the most recent quarter. The company's profitability remains strong, with a gross profit margin of 36.29% and an operating income margin of 10.04%.
InvestingPro Tips highlight Tractor Supply's commitment to shareholder returns. The company has raised its dividend for 14 consecutive years and maintained dividend payments for 15 years, demonstrating a strong track record of returning value to investors. This aligns with the company's recent earnings beat and the positive analyst outlook mentioned in the article.
Moreover, Tractor Supply's financial stability is underscored by another InvestingPro Tip, which indicates that the company's cash flows can sufficiently cover interest payments. This financial prudence supports the company's ability to pursue strategic initiatives like the Allivet acquisition, potentially driving future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Tractor Supply Company, providing a deeper dive into the company's financial health and market position.
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