Categories AlphaGraphs, Earnings, LATEST, Other Industries

Fastenal Q2 results crush estimates; stock gains 7%

With a client base that includes several large corporate firms, Fastenal (FAST) has been registering sales growth consistently for nearly a decade. And, the latest quarter was no different, when earnings surged and surpassed estimates supported by a further strong growth in demand. The company’s stock gained significantly in the premarket soon after the earnings report.

Earnings of Fastenal, a leading distributor of industrial and construction supplies, jumped 41.9% year-over-year to $211.2 million in the second quarter. At $0.74, earnings per share were higher by 42.6% compared to last year, which came in above Wall Street expectations.

Fastenal second quarter 2018 earnings

The strong performance was driven by a 13.1% spike in sales to $1.27 billion, marking the fifth consecutive double-digit increase. The top-line growth is attributable to the underlying market demand, particularly for industrial vending and Onsite locations. The company also benefitted from the robust non-residential construction sales and demand in the manufacturing sector.

During the second quarter, total Onsite signings rose 19.1% to 81, raising the number of active sites to 761. Looking ahead, the company expects to sign 360-385 Onsites in the whole of 2018. A total of 5,537 vending devices were signed during the three-month period, up 13.4% from the year-ago quarter.

The daily sales of Fastenal products grew 11.1% in the second quarter, while those of non-fastener products advanced 14.8%.

The positive results triggered a stock rally, and the company’s stock gained significantly in premarket trading

Of late, Fastenal has been realigning its operations to overcome the stress on margins due to rising costs and a not-so-impressive revision of the product portfolio. The company continues to benefit from last year’s acquisition of the assets of its regional distribution partner Manufacturer’s Supply Company.

Earlier this week, the management declared a cash dividend of $0.40 per share on the common stock – to be paid on August 22, 2018, to shareholders as on July 25, 2018.

Fastenal shares, which have been trading higher since last week when it plunged to the lowest level so far this year, gained nearly 7% in premarket trading Wednesday.

Most Popular

Key highlights from Halliburton (HAL) Q1 2021 earnings results

Halliburton Company (NYSE: HAL) reported first-quarter 2021 earnings results today. Total revenue decreased by 31% to $3.45 billion from $5.03 billion year on year. The company had a net income

Key highlights from Intuitive Surgical (ISRG) Q1 2021 earnings results

Intuitive Surgical, Inc. (NASDAQ: ISRG) reported first quarter 2021 earnings results today. Revenues increased 18% year-over-year to $1.29 billion, driven by growth in da Vinci procedures and system placements. GAAP net income

Earnings Infographic: Netflix (NFLX) subscriber growth slows; Q1 results beat

Netflix, Inc. (NASDAQ: NFLX) Tuesday said its first-quarter 2021 earnings more than doubled. Both revenues and profit topped the Street view, but the streaming giant's subscriber growth decelerated. At the

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top