Tractor Supply Shares Plunge 12.4% After Q1 EPS Miss, Jefferies Cuts Target to $51
Tractor Supply’s shares plunged 12.41% to a 52-week low of $39.25 after reporting Q1 EPS of $0.31 versus a $0.34 forecast and revenue just under $3.6 billion. Jefferies cut its price target to $51 from $60, implying a 29.9% upside.
1. Q1 Earnings and Revenue Results
Tractor Supply reported EPS of $0.31 in Q1, missing the consensus by $0.03. Revenue reached $3.59 billion, 1% below estimates and up 3.6% year-over-year, while SG&A expenses rose 6%, dragging net income down 8% and delivering 0.5% comparable-store sales growth.
2. Stock Price Reaction and Analyst Downgrade
Shares fell 12.41% to $39.25, a 52-week low, on volume exceeding 20.26 million. Jefferies lowered its price target to $51 from $60, citing weaker comps and implying 29.9% upside to the revised target.
3. Outlook and Digital Growth
Management reaffirmed full-year guidance of 1%-3% comparable store sales growth and up to 6% total sales growth. Digital sales grew over 20%, driven by subscription enhancements and expansion of the Final Mile delivery network.