Yahoo Finance Here's What Analysts Are Forecasting For Tractor Supply Company (NASDAQ:TSCO) After Its Second-Quarter Results
Investors in Tractor Supply Company (NASDAQ:TSCO) had a good week, as its shares rose 3.1% to close at US$261 following the release of its quarterly results. It was a credible result overall, with revenues of US$4.2b and statutory earnings per share of US$3.93 both in line with analyst estimates, showing that Tractor Supply is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Tractor Supply
Following last week's earnings report, Tractor Supply's 29 analysts are forecasting 2024 revenues to be US$14.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$10.28, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.9b and earnings per share (EPS) of US$10.28 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$272. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Tractor Supply analyst has a price target of US$313 per share, while the most pessimistic values it at US$205. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Tractor Supply's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tractor Supply.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$272, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Tractor Supply analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Tractor Supply has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
