Tractor Supply shares fall 6% as guidance narrowed despite Q3 beat

BRENTWOOD, Tenn. - On Thursday, Tractor Supply Company (NASDAQ:TSCO) narrowed its full-year guidance despite reporting better-than-expected third-quarter earnings.

The rural lifestyle retailer’s shares fell 5.95% in pre-market trading after the results.

The company posted earnings per share of $0.49 for the third quarter, slightly above the analyst estimate of $0.48. Revenue reached a record $3.72 billion, in line with consensus estimates and up 7.2% from the same period last year. Comparable store sales increased 3.9%, driven by a 2.7% rise in transaction count and a 1.2% increase in average ticket size.

Despite the quarterly beat, investors reacted negatively to Tractor Supply’s narrowed full-year guidance. The company now expects fiscal 2025 earnings per share between $2.06 and $2.13, compared to its previous range of $2.00 to $2.18. The company also tightened its comparable store sales growth forecast to 1.4%-2.4%, down from the previous 0%-4% range.

"The Tractor Supply team delivered a strong third quarter. This performance was driven by ongoing share gains, agile execution through an extended summer season and healthy transaction growth," said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Gross margin improved by 15 basis points to 37.4%, benefiting from the company’s focus on product cost management and execution of its everyday low price strategy. However, this was partially offset by tariff costs and higher transportation expenses.

For the fourth quarter, Tractor Supply projects comparable store sales growth of 1% to 5%. The company opened 29 new Tractor Supply stores during the third quarter while closing one Petsense by Tractor Supply location.

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