Tractor Supply Company (NASDAQ:TSCO) shares were higher Thursday despite the company’s earnings miss.
The farm and ranch store retailer earned $1.25 per share in its second quarter, missing the analysts’ consensus estimate of $1.27 per share, but topping the year-ago figure by a 7.8% margin. Gross profit came in at $704.7 million, an 8.5% increase from $649.2 million a year ago.
Revenue came in at $2.02 billion, ahead of the year-ago figure of $1.85 billion by 8.9%. Comparable sales were better than last year’s second quarter by 2.2%, compared to a 0.5% drop in the year-ago period.
Tractor Supply Company posted sales gains that came in at a 9% rate, ahead of the 7% from this year’s first quarter. Favorable weather conditions and higher customer traffic helped the company’s margins improve, while profitability was lower due to higher costs.
Net income was stronger at 2.7% to $160.6 million from $156.4 million. CEO Greg Sandfort said that the connection between the company’s stores and its online presence helped strengthen it, thanks to an improved shopping experience that has resonated with customers, and lifted its top line results.
“With this in mind, we continue to execute against the strategic initiatives that we believe will drive sales and customer service as well as maintain our competitive positioning,” he added.
Tractor Supply Company now expects earnings to be $3.22 to $3.27 for the fiscal year, down from $3.44 to $3.52 for the year.
TSCO stock surged 8.1% Thursday.