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January 28, 2022
Tractor Supply Q4 Completes a Good Year
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A strong comp performance helped Tractor Supply beat Wall Street estimates in the fourth quarter.

Company net income was $221.3 million, or  $1.93 per diluted share, versus $135.9 million, or $1.15, per diluted share, in the 2020 fourth quarter, the company stated.

For the 2020 period, Tractor Supply included an adjusted net income number of $193.2 million, or $1.61 per diluted share excluding an after-tax impact of the discrete impairment charges of $57.3 million, or 49 cents per diluted share.

Tractor Supply topped a MarketBeat-published analyst consensus earnings per diluted share estimate of $1.85 and a sales estimate of $3.23 billion.

Net sales for the 2021 quarter increased 15.3% to $3.32 billion as comparable sales increased 12.7% on top of an increase of 27.3% in the prior-year period, according to Tractor Supply. Comparable average ticket growth and comparable average transaction count growth of 10.3% and 2.4%, respectively, drove the overall comp advance versus the year-before period. Comp growth was broad-based and reflected robust demand for everyday merchandise, including consumable, usable and edible products, Tractor Supply noted. All geographic regions and major merchandising categories enjoyed comp growth, the company added, and e-commerce sales experienced strong double-digit gains for the 38th consecutive quarter.

Operating income increased 58.9% to $293.1 million from $184.5 million in the year-earlier quarter, Tractor Supply maintained. On an adjusted basis, operating income gained 13.4% compared to $258.5 million in the 2020 fourth quarter.

For the full fiscal year, net income advanced to $997.1 million, or $8.61 per diluted share, from $749 million, or $6.38 per diluted share, from the year-previous annum, Tractor Supply reported. Adjusted net income in fiscal 2020 was $806.2 million, or $6.87 per diluted share.

Net sales increased 19.9% to $12.73 billion as comps gained 16.9% over a 23.1% increase in fiscal 2020. Operating income increased 31.1% to $1.31 billion year over year, Tractor Supply maintained. On an adjusted basis, operating income gained 22% compared to adjusted operating income of $1.07 billion in fiscal 2020.

“Tractor Supply had an outstanding fourth quarter, capping off a record year of sales and earnings in 2021,” said Hal Lawton, Tractor Supply’s president and CEO, in announcing the financial results. “Today, our business is substantially stronger than before the pandemic. Our resilient and differentiated business model has allowed us to capitalize on the structural consumer trends benefiting our business, and we believe we have a long growth runway ahead of us. We have strong momentum in our business, and our results demonstrate that our multiyear Life Out Here strategy is working. The combination of the strong cash generation of Tractor Supply’s business and our board’s confidence in our outlook position us to return capital to shareholders through the largest dividend increase in our history and an expanded share repurchase authorization. We believe we are well-positioned to continue to drive profitable growth and enhance value for our shareholders.”

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