Fastenal Q2 Profit Tops View, But Revenues Miss

(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST) reported Tuesday profit for the second quarter that grew eight 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 $140.36 million or $0.48 per share for the second quarter, higher than $130.51 million or $0.44 per share in the prior-year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 5.0 percent to $997.83 million from $949.94 million in the same quarter last year, but missed eleven Wall Street analysts' consensus estimate of $1.01 billion by a whisker.

Sales were boosted mainly from higher unit sales, while it was impacted by minimal price changes in its 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 April grew 6.1 percent, May sales increased 5.3 percent, and June sales rose 3.7. percent from the same months last year.

Operating margin for the second quarter improved 80 basis points to 22.6 percent from last year's 21.8 percent, as operating and administrative expenses as a percentage of net sales decreased 140 basis points, partially offset by a 50 basis points decline in gross margin.

FAST closed Monday's regular trading session at $42.82, up $0.21 on a volume of 2.94 million shares.