Fastenal Earnings: Double-Digit Growth Again

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

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Fastenal Company Earnings Cheat Sheet

Results: Net income for Fastenal Company rose to $109.3 million (37 cents per share) vs. $96.8 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 12.9% from the year-earlier quarter.

Revenue: Rose 10.4% to $802.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fastenal Company fell short of the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $807.6 million.

Quoting Management: “Our motto is Growth through Customer Service,” the company said in a press release. “This is important given the points noted above. We believe in efficient markets — to us, this means we can grow our market share if we provide the greatest value to the customer. We believe our ability to grow is amplified if we can service our customer at the closest economic point of contact,” the company added.

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 17.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 21.6% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 19.3% and in the first quarter, the figure rose 26%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 38 cents versus a mean estimate of net income of 37 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 36 cents a share to 35 cents over the last sixty days. The average estimate for the fiscal year is now $1.44 per share, down from $1.47 sixty days ago.

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

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