Tractor Supply Q3 Profit Beats Estimates; Updates 2015 Guidance

(RTTNews) - Tractor Supply Company (TSCO), the largest rural lifestyle retail store chain in the United States, reported an improved third quarter profit fueled by growth in net sales of 8.5%. Gross profit increased 10.4%. As a percent of sales, gross margin increased 60 basis points to 34.7%. The company said the increase in gross margin resulted from strong price and markdown management, as well as lower fuel costs, which more than offset the stem mile increase from the company's western store expansion.

The company tightened its fiscal 2015 guidance ranges. Net Sales are now expected to be in the range of $6.28 billion - $6.33 billion compared to prior outlook of $6.25 billion - $6.33 billion. Earnings per Share is expected to be in the range of $3.02 - $3.08 compared to prior outlook of $3.00 - $3.08.

For the third quarter ended September 26, 2015, net income increased 14.0% to $87.3 million from $76.6 million and earnings per share increased 16.4% to $0.64 from $0.55 prior year. On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $0.63 for the quarter. Analysts' estimates typically exclude special items.

Net sales was $1.48 billion compared to $1.36 billion in the prior year's third quarter. Comparable store sales increased 2.9% driven by strong performance in consumable, usable and edible products. Analysts expected revenue of $1.48 billion for the quarter.