Tractor Supply Company (TSCO), the largest rural lifestyle retail store chain in the US, has posted a 7.96 percent increase in profit for the quarter ended Jun. 28, 2014. The company earned $133.41 million or $0.95 a share in the second-quarter compared with $123.58 million or $0.87 a share a year ago. Analysts on average had predicted net income of $1.02 a share.

Revenue during the second-quarter grew 8.80 percent to $1583.83 million from $1455.77 million in the last year period.

Gross margin contracted by 1 basis point over the previous year period to 34.76 percent. Total expenses as a percentage of revenues increased to 86.68 percent from 86.40 percent in the same period last year. That has resulted in contraction of 28 basis points in operating margins to 13.32 percent.

The company disclosed operating income of $211.03 million, compared with operating income of $197.98 million in the last year period.

The company anticipates its fiscal year 2014 results will be at the low end of the previously provided ranges of $5.62 billion to $5.70 billion in net sales and $2.54 to $2.62 in diluted earnings per share. 

For the full year, the company now expects capital expenditures to range between $220 million and $230 million compared to its previous guidance of $240 million to $250 million, including spending to support 102 to 106 new store openings and completion of the new Store Support Center.

Cash Position

As on Jun. 28, 2014, the company's cash balance stood at $55.96 million, up 0.48 percent or $0.27 million from Jun. 29, 2013.

Working Capital

Tractor Supply Company has witnessed an increase in the working capital over the last one year. The company's working capital stood at $655.20 million as at Jun. 28, 2014, up $29.05 million or 4.64 percent from $626.15 million on Jun. 29, 2013. It registered a decrease in current ratio to 2.04 as at Jun. 28, 2014 from 2.08 on Jun. 29, 2013.

Debt Position

Tractor Supply Company has witnessed an increase in the total debt over the last one year. As on Jun. 28, 2014, total debt stood at $3.20 million, up $1.94 million from Jun. 29, 2013. The company's total debt was 0.16 percent of total assets as on Jun. 28, 2014, compared with 0.07 percent on Jun. 29, 2013.

Shares of Tractor Supply Company declined 52 cents or 0.84 percent to close at $61.07 on Wednesday.