Fastenal Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Fastenal (NASDAQ:FAST) will unveil its latest earnings on Thursday, October 11, 2012. Fastenal is a wholesale retailer of industrial and construction supplies in North America.

Fastenal Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 37 cents per share, a rise of 12.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from 38 cents during the last month. Analysts are projecting profit to rise by 19% compared to last year’s $1.44.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 38 cents per share against a mean estimate of net income of 37 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, profit rose 19.3% to $112.3 million (38 cents a share) from $94.1 million (32 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.7% to $804.9 million from $701.7 million.

Wall St. Revenue Expectations: On average, analysts predict $804.9 million in revenue this quarter, a rise of 10.8% from the year-ago quarter. Analysts are forecasting total revenue of $3.16 billion for the year, a rise of 14.1% from last year’s revenue of $2.77 billion.

Stock Price Performance: From September 7, 2012 to October 5, 2012, the stock price rose $2.05 (4.9%), from $42.13 to $44.18. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 29, 2012, when shares rose for seven straight days, increasing 8.5% (+$3.57) over that span. It saw one of its worst periods between October 10, 2011 and October 17, 2011 when shares fell for six straight days, dropping 4.1% (-$1.42) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 19.2% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 34.2% in the fourth quarter of the last fiscal year and 26% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.55 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with nine of 10 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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