Tractor Supply(US:TSCO) ZACKS·2025-10-23 16:36Core Insights - Tractor Supply Company (TSCO) reported third-quarter 2025 results with earnings of 49 cents per share, surpassing the Zacks Consensus Estimate of 48 cents, and reflecting an 8.6% increase from the prior-year quarter [1][10] Financial Performance - Net sales increased by 7.2% year over year to $3.72 billion, aligning with the Zacks Consensus Estimate, driven by new store openings, Allivet gains, and higher comparable store sales [2][10] - Comparable store sales grew by 3.9% year over year, reversing a 0.2% decline from the previous year's third quarter, supported by a 2.7% rise in average transaction count and a 1.2% increase in average ticket [3] - Gross profit rose by 7.7% year over year to $1.39 billion, with gross margin improving by 15 basis points to 37.4%, primarily due to effective product cost management [4][10] Cost and Margin Analysis - Selling, general and administrative (SG&A) expenses increased by 8.4% to $1.05 billion, with SG&A as a percentage of net sales rising to 28.1% from 27.8% in the prior year, largely due to planned investments and timing of incentive compensation [5] - Operating income grew by 5.6% year over year to $342.7 million, while the operating margin fell by 20 basis points to 9.2% [6] Financial Position - At the end of the quarter, Tractor Supply had cash and cash equivalents of $184.6 million, long-term debt of $1.74 billion, and total stockholders' equity of $2.57 billion [7] - The company returned $197.3 million to shareholders, including the repurchase of 1.3 million shares for $75.4 million and $121.9 million in quarterly cash dividends [8] Outlook - Management revised its guidance for 2025, now expecting net sales growth of 4.6-5.6% and comparable sales growth of 1.4-2.4% [11] - Projected operating margin rate is between 9.5% and 9.7%, with net income expected to be between $1.09 billion and $1.14 billion, and earnings per share anticipated to be $2.06-$2.13 [12]