Tractor Supply Company (NASDAQ:TSCO) shares are trading higher on Thursday.

The company reported third-quarter earnings per share of 49 cents, beating the analyst consensus estimate of 48 cents.

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Quarterly sales were $3.719 billion (+7.2% year-over-year), which is in line with the Street view.

Following the quarterly results, Telsey Advisory Group analyst Joseph Feldman maintains an Outperform rating, with a $70 price forecast.

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Tractor Supply reported a 3.9% increase in comparable store sales for the quarter, driven by a 2.7% rise in average transaction value.

「This performance was driven by ongoing share gains, agile execution through an extended summer season and healthy transaction growth,」 said Hal Lawton, president and CEO of Tractor Supply. 

Margins Up

Gross profit increased 7.7% to $1.39 billion. Gross margin rate increased 15 basis points to 37.4% from 37.2% in the prior year’s third quarter.

Tractor Supply said there was gross margin improvement from the company’s ongoing focus on product cost management. However, the continued execution of an everyday low price strategy was partially offset by tariff costs and higher transportation costs.

Operating income increased 5.6% to $342.7 million from $324.6 million in the third quarter of 2024.

Operating margin fell to 9.2% from 9.4% in the year-ago period.

The company opened 29 new Tractor Supply stores and closed one Petsense by Tractor Supply store in the third quarter.

The company exited the quarter with cash and equivalents worth $184.639 million. Inventories at the end of the quarter totaled $3.252 billion.

Outlook

Tractor Supply narrowed its fiscal year 2025 GAAP EPS outlook to $2.06–$2.13.

The prior range was $2–$2.18. The new midpoint sits near the $2.10 analyst consensus.

Management also trimmed fiscal year 2025 sales guidance to $15.567–$15.716 billion from $15.478–$16.074 billion, versus the $15.673 billion estimate.

TSCO Price Action: Tractor Supply shares are up 5.01% at $57.58 Thursday morning at publication.

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