Fastenal Co. Q2 Profit Meets View, While Net Sales Miss Forecast

(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST) reported Friday higher profit for its second quarter that met analysts' consensus. Net sales increased from last year, primarily due to higher unit sales, but missed Wall Street estimates.

In pre-market activity, Fastenal shares are losing $0.85 or 1.74 percent, and trading at $48.15.

Second-quarter net income increased 7.9 percent to $130.51 million from $121.01 million last year. Earnings per share grew to 7.3 percent to $0.44 from $0.41 a year ago.

On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.44 for the quarter. Analysts' estimates typically exclude special items.

Pre-tax earnings increased 7.5 percent year-over-year to $206.78 million or 21.8 percent of total sales, compared to last year's 22.7 percent of total sales. Gross profit for the quarter was $482.67 million, higher than last year's $442.72 million.

The company, which operates around 2,677 stores, generated net sales of $949.94 million, 12.1 percent higher than $847.60 million a year ago. Analysts expected revenue of $952.45 million for the quarter.

Net sales growth was impacted by slight inflationary price changes in non-fastener products and some price deflation in fastener products, but the net impact was a drag on growth, the company noted.

The company said its daily sales, i.e., total net sales for the period, divided by the number of business days, grew 12.1 percent to $14.84 million from $13.24 million a year ago. The impact of currency fluctuations, primarily Canada, was negative 0.4 percent. Business days were unchanged from last year at 64.

For the month of June, daily sales growth rate was 12.7 percent, and daily sales growth rate from stores opened greater than two years, which represent a consistent 'same-store' view of business, was 11.4 percent.

Fastenal closed eight stores during the second quarter and identified additional stores it intend to close in the second half of 2014.

For the first half, the company's net earnings grew 5.4 percent year-over-year to $242.45 million or $0.82 per share, and net sales increased 10.4 percent to $1.83 billion.

Fastenal shares closed Thursday's trading at $48.15, down $0.85 or 1.74 percent.