TSCO Tractor Supply Company

On the back of strong same-store sales, improved merchandise mix, prudent inventory management and effective cost control, Tractor Supply Co. (TSCO) posted better-than-expected fourth-quarter 2010 results. The quarterly earnings beat the Zacks Consensus Estimate of $0.62. Furthermore, margins improved due to portfolio expansion of private label brands and focus on direct sourcing of merchandise.

The company has set a long-term target of generating 25% of sales from private label brands and 13% from strategic direct sourcing. Tractor is well positioned to capitalize on positive long-term trends. The company is expecting sales in the range of $4.0 billion to $4.07 billion in fiscal 2011.

Moreover, Tractor Supply's nearly debt-free balance sheet augurs well for future operating performance. Currently we maintain our Outperform recommendation on the stock.
 
TRACTOR SUPPLY (TSCO): Free Stock Analysis Report
 
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