Fastenal Earnings: Here’s Why Investors are Bidding Up Shares

Fastenal Co. (NASDAQ:FAST) reported double-digit profit growth and met Wall Street’s expectations, yet was slightly off the analyst revenue estimate. Investors are satisfied with the top-line and bottom-line growth today. Shares are up 1.60%.

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Fastenal Co. Earnings Cheat Sheet

Results: Net income increased 12.84% to $98.7 million (33 cents per diluted share) in the quarter versus a net gain of $87.47 million in the year-earlier quarter.

Revenue: Rose 8.51% to $757.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fastenal Co. reported adjusted net income of 33 cents per share. By that measure, the company met the mean analyst estimate of $0.33. It missed the average revenue estimate of $758.62 million.

Key Stats:

Revenue decreased 5.65% from $802.58 million in the previous quarter. Net income decreased 9.71% from $109.32 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.39 to a profit $0.38. For the current year, the average estimate has moved down from a profit of $1.44 to a profit of $1.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)