Tractor Supply Shares Popped: What You Need to Know
Jan 12th 2012 11:45AM
Updated Jan 12th 2012 11:46AM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of farm equipment supplier Tractor Supply Co. (NAS: TSCO) climbed as much as 10% Thursday after its fourth-quarter sales topped Wall Street expectations.
So what: Tractor Supply's better-than-expected top line -- revenue for the fourth quarter jumped 20% to $1.24 billion, versus the consensus of $1.2 billion -- prompted management to raise its full-year earnings outlook, as well. The stock is even flirting with its 52-week high on the news, suggesting that Mr. Market fully expects the sales momentum to continue.
Now what: Looking ahead, management sees full-year 2011 EPS of $2.97-$2.99, up nicely from its prior guidance of $2.85-$2.89. "We are very pleased that we have maintained the momentum in our business and are confident in our ability to deliver continued profitable growth," said Chairman and CEO Jim Wright. Of course, with Tractor Supply shares up a whopping 70% over the past year and sporting a forward P/E of 23, the stock might already have plenty of that optimism baked into it.
Interested in more info on Tractor Supply? Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.