Fastenal Earnings CHEAT SHEET: Double-Digit Growth AGAIN!

S&P 500 (NYSE:SPY) component Fastenal Company (NASDAQ:FAST) reported its results for the second 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 $112.3 million (38 cents per share) vs. $94.1 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 19.3% from the year-earlier quarter.

Revenue: Rose 14.7% to $804.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fastenal Company beat the mean analyst estimate of 37 cents per share. Analysts were expecting revenue of $807.6 million.

Quoting Management: We grow by continuously adding customers and by increasing the activity with each customer. We believe this growth is enhanced by our close proximity to our customers, which allows us to provide a range of services and product availability that our competitors can’t easily match. Historically, we expanded our reach by opening stores at a very fast pace. These openings were initially in the United States, but expanded beyond the United States beginning in the mid 1990’s.

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 19.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 22.9% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 26% and in the fourth quarter of the last fiscal year, the figure rose 34.2%.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 34 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 39 cents a share to 37 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached $1.42 abs per share, a decline from $1.47.

Competitors to Watch: W.W. Grainger, Inc., Moore-Handley, Inc., Interline Brands, Inc., Precision Aerospace Components Inc, Coventry Group Ltd., Brueder Mannesmann Aktiengesellschaft, Lawson Products, Inc., General Commercial & Industrial S.A., and Chuan Huat Resources Berhad.

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

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