Fastenal Earnings: Enjoys Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Fastenal Company (NASDAQ:FAST) reported higher profit for the fourth 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 Fourth Quarter.

Results: Net income for the general building materials company rose to $87.5 million (30 cents per share) vs. $65.2 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 34.2% from the year earlier quarter.

Revenue: Rose 21.6% to $697.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FAST beat the mean analyst estimate of 29 cents per share. Analysts were expecting revenue of $695.6 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 21.6%, with the biggest boost coming in the first quarter when revenue rose 23% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 29.1% and in the second quarter, the figure rose 36.1%.

Gross margin shrank 0.9 percentage point to 51.2%. The contraction appeared to be driven by increased costs, which rose 23.8% from the year earlier quarter while revenue rose 21.6%.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 33 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at 33 cents per share, up from 33 cents. For the fiscal year, the average estimate has moved up from $1.20 a share to $1.21 over the last sixty days.

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

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com