Tractor Supply in big guidance hike

Retailer sees Q3 topping analysts' outlook by more than 25 percent

Email | Print By Geert De Lombaerde

Shares of Tractor Supply are set for a strong day after the company raised its third-quarter earnings forecast on the back of strong top- and bottom-line growth.

The Brentwood-based retailer said it expects to earn between $21.1 million and $22.2 million in the third quarter, which would be at least 32 percent better than the year-ago quarter. Per diluted share, those profit estimates would equate to 58 to 60 cents, well above analysts' consensus forecast of 46 cents.

The company's pre-announcement this morning comes a day after analysts at Wells Fargo Securites resumed coverage with a 'market perform' rating they say was based on limited potential for margin expansion. Chairman and CEO Jim Wright said his team "did an outstanding job delivering gross margin improvement and strong earnings performance by managing markdowns, inventories and expenses."

So there.

Shares of Tractor Supply (Ticker: TSCO) are up 6 percent in pre-market trading. So far this year, they've risen more than 40 percent.