Fastenal Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Fastenal Company (NASDAQ:FAST) reported higher profit for the third quarter as revenue showed growth. Fastenal is a wholesale retailer of industrial and construction supplies in North America.

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Fastenal Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for the general building materials company rose to $96.8 million (33 cents per share) vs. $75 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 29.1% from the year earlier quarter.

Revenue: Rose 20.4% to $726.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FAST fell in line with the mean analyst estimate of 33 cents per share. Analysts were expecting revenue of $722 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 23.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 36.1% and in the first quarter, the figure rose 42%.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.

Gross margins grew 0.1 percentage point to 51.9%. The growth seemed to be driven by increased revenue, as the figure rose 20.4% from the year earlier quarter while costs rose 20%.

Looking Forward: Expectations for the fourth quarter have not changed from 28 cents. The average estimate hasn’t changed from $1.20 per share for the fiscal year.

Competitors to Watch: Interline Brands, Inc. (NYSE:IBI), General Electric (NYSE:GE), Lawson Products, Inc. (NASDAQ:LAWS), W.W. Grainger, Inc. (NYSE:GWW), Caterpillar Inc. (NYSE:CAT), 3M Company (NYSE:MMM), and Honeywell International Inc. (NYSE:HON).

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(Source: Xignite Financials)

 

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