Tractor Supply Company
) is set to report its fourth quarter 2012 results on Jan 30.
Last quarter it posted an approximately +3.0% surprise. Let's see
how things are shaping up for this announcement.
Growth Factors in the Past Quarter
The company's impressive merchandising improvement strategy
resulted in high single-digit top-line growth in the
last-reported quarter. Robust performance in core consumable,
usable and edible products − mainly for pet food and animal feed
− acted as a catalyst for increase in the company's same-store
sales. Moreover, better cost containment related to store
personnel and lower incentive compensation expenses boosted its
operating margin. Further, as new construction activities are
showing signs of improvement, we believe that Tractor Supply is
well positioned to grab the opportunity.
Our proven model does not conclusively show that Tractor
Supply is likely to beat earnings this quarter. That is because a
stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. That is not
the case here, owing to the following factors:
ESP for Tractor Supply is 0.00%. This is because the Most
Accurate Estimate stands at $1.03, which is in line with the
Zacks Consensus Estimate.
Zacks #3 Rank (Hold):
Tractor Supply's Zacks Rank #3 (Hold) lowers the predictive power
of ESP because the Rank #3, when combined with a 0.00% ESP makes
the surprise prediction difficult. We caution against stocks with
Zacks #4 and #5 Ranks (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider. Our
model shows that the following companies have the right
combination of elements to post an earnings beat this
Big 5 Sporting Goods Corporation
) has Earnings ESP of 5.56% and Zacks Rank #1 (Strong Buy).
Home Depot Inc.
) Earnings ESP stands at 1.59% and it carries a Zacks Rank #2
Abercrombie & Fitch Company
) with Earnings ESP of 7.25%, holds a Zacks Rank #2 (Buy).
ABERCROMBIE (ANF): Free Stock Analysis Report
BIG 5 SPORTING (BGFV): Free Stock Analysis
HOME DEPOT (HD): Free Stock Analysis Report
TRACTOR SUPPLY (TSCO): Free Stock Analysis
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