Hot Move to Watch: Tractor Supply Company (NASDAQ:TSCO)

Tractor Supply Company (NASDAQ:TSCO) changed +0.09% to recent value of $106.86. The stock transacted 698,574 shares during most recent day however it has an average volume of 1,264,465 shares. It spotted trading -2.56% off 52-week high price. On the other end, the stock has been noted 42.61% away from the low price over the last 52-weeks. The company has 120.64M shares outstanding and market value of 12.892B.

Tractor Supply Company (TSCO) recently stated financial results for its first quarter ended March 30, 2019.

“Tractor Supply started off 2019 with strong performance in the first quarter with comparable store sales growth of 5.0% driven, once again, by balanced and broad-based sales growth across our differentiated model. Throughout the quarter, the team worked together to ensure that our seasonal product assortments and in-stock levels were appropriate to support our consumers’ changing needs across our regions. As we enter the second quarter, we believe we are well-positioned to capitalize on the spring selling season,” stated Greg Sandfort, Tractor Supply’s Chief Executive Officer. 

First Quarter Results:
Net sales for the first quarter 2019 raised 8.3% to $1.82B from $1.68B in the first quarter of 2018. Comparable store sales raised 5.0% contrast to an raise of 3.7% in the previous year’s first quarter. The comparable store sales results included raises in comparable transaction count and average ticket of 1.8% and 3.2%, respectively. All geographic regions of the Company and all major product categories had positive comparable store sales growth. The raise in comparable store sales was primarily driven by strength in everyday merchandise, including consumable, usable and edible products, together with strong demand for winter seasonal categories and, to a lesser extent, sales of spring merchandise.    

Gross profit raised 9.1% to $615.0M from $563.6M in the previous year’s first quarter, and gross margin raised 26 basis points to 33.8% from 33.5% in the previous year’s first quarter. The raise in gross margin was primarily driven by strong sell-through of winter seasonal categories and the strength of the Company’s price management program, partially offset by an raise in transportation costs.  

Selling, general and administrative (SG&A) expenses, including depreciation and amortization, raised 9.1% to $511.6M from $468.9M in the previous year’s first quarter. As a percent of net sales, SG&A expenses raised 21 basis points to 28.1% from 27.9% in the previous year’s first quarter. The raise in SG&A as a percent of net sales was primarily attributable to incremental costs associated with a new distribution facility in Frankfort, N.Y., and higher store and field team members’ incentive compensation Because of the strong year-over-year performance and, to a lesser extent, investment in store team member wages. These SG&A raises were partially offset by leverage in occupancy and other costs from the raise in comparable store sales.

The effective income tax rate was 22.0% contrast to 20.9% in the previous year’s first quarter. 

Net income raised 7.6% to $76.8M in the first quarter of 2019 from $71.4M in the previous year’s first quarter and diluted earnings per share raised 10.5% to $0.63 from $0.57 in the first quarter of 2018.

The Company opened 10 new Tractor Supply stores and one Petsense store in the first quarter of 2019 contrast to 15 new Tractor Supply store openings and four Petsense store openings in the previous year’s first quarter.   

A look on the firm performance, its monthly performance is 4.73% and a quarterly performance of 13.62%.  The stock price switched up 2.11% 20-Days Simple Moving Average, added 3.28% from 50-Days Simple Moving Average and rose 13.81% from 200 Days Simple Moving Average.

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