This Analyst Downgrades Tractor Supply Despite EPS Beat, Cites Short-Term Hurdles
Portfolio Pulse from Lekha Gupta
Raymond James analyst Bobby Griffin downgraded Tractor Supply Company (TSCO) to Outperform from Strong Buy, despite an EPS beat in Q4 results, due to short-term hurdles. Sales declined 8.6% YOY to $3.66 billion, slightly missing consensus. The company's FY24 EPS and sales forecasts are below consensus estimates. Griffin also lowered EPS estimates for FY24 and FY25, citing pressures on EBIT margin due to various factors. However, he raised the FY24 comp sales estimate slightly, expecting a modest increase in sales estimates for 2024.
February 02, 2024 | 7:04 pm
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Tractor Supply downgraded to Outperform from Strong Buy by Raymond James, despite Q4 EPS beat. Sales missed consensus slightly, and FY24 forecasts are below expectations. EPS estimates for FY24 and FY25 were also lowered.
The downgrade by Raymond James, despite the EPS beat, indicates concerns over short-term hurdles that could impact TSCO's stock price negatively. The slight miss in sales consensus and lower than expected FY24 forecasts contribute to a bearish outlook. The reduction in EPS estimates for FY24 and FY25 further supports the negative impact. The stock's immediate negative reaction (-1.23%) post-news also aligns with the expected short-term negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100