Tractor Supply Company ( TSCO ) shares are trading lower after the company reported first-quarter earnings per share of $1.83, beating the analyst consensus of $1.71. 

Quarterly revenues of $3.395 billion were in line with the estimates, rising 2.9% year over year. 

Comparable store sales, which increased 1.1%, slowed compared to the prior year  (2.1% growth for the previous year’s first quarter).

New store openings and comparable sales growth drove the net sales increase. 

Gross profit increased 4.4% to $1.22 billion from $1.17 billion in the year-ago quarter. 

The gross margin increased 50 basis points to 36.0% from 35.5% in the first quarter of the prior year. The gross margin rate increase was primarily attributable to ongoing lower transportation costs, disciplined product cost management, and the execution of an everyday low price strategy.

Operating income increased 7.6% to $263.1 million from $244.4 million in the first quarter of 2023.

The company opened 17 new Tractor Supply ( TSCO ) stores and four new Petsense by Tractor Supply ( TSCO ) stores in the first quarter of 2024.

Outlook: Tractor Supply ( TSCO ) reiterated its FY24 outlook with GAAP EPS of $9.85-10.50 versus the $10.22 estimate. The company sees sales of $14.700 billion-15.100 billion versus the $14.98 billion estimate.

Price Action: TSCO shares are trading lower by 2.11% to $254.16 at last check Thursday.