Fastenal Q1 Profit Tops View, But Revenues Miss

(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST) reported Tuesday profit for the first quarter that grew 14 percent from last year, reflecting improved operating margins and net sales growth. Earnings per share for the quarter topped analysts' expectations by a penny, while quarterly net sales missed their estimates by a whisker.

The Winona, Minnesota-based company reported net earnings of $127.61 million or $0.43 per share for the first quarter, higher than $111.93 million or $0.38 per share in the prior-year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 8.8 percent to $953.32 million from $876.50 million in the same quarter last year, but missed eleven Wall Street analysts' consensus estimate of $955.19 million by a whisker.

Sales were boosted mainly from higher unit sales, while it was impacted by slight inflationary price changes in the non-fastener products and some price deflation in its fastener products, but the net impact was a drag on growth.

The company's monthly net sales for January grew 12.0 percent, February sales increased 8.6 percent, and March sales rose 56. percent from the same months last year.

Operating margin for the first quarter improved 100 basis points to 21.4 percent from last year's 20.4 percent, as operating and administrative expenses as a percentage of net sales decreased 140 basis points, partially offset by a 40 basis points decline in gross margin.

In Tuesday's regular trading session, FAST is currently trading at $41.13, up $1.11 or 2.77% on a volume of 1.93 million shares.