Fastenal stock up after revenue hike of 13%

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  • Fastenal Co shares increase by 6%
  • 35% rise in year-on-year reported adjusted earnings
  • Total reported profits of $751.9 million

Fastenal Co shares saw a jump of 4.36% yesterday to hit $56.48 in the wake of revenue data that easily beat Wall Street expectations.

The construction supply company, which is based in Winona, Minnesota, reported adjusted earnings of 60 cents a share in the quarter, a rise of almost 35% year on year. Although this matched analysts’ predictions of a total of $1.23 billion in revenue, representing a 13.2% year-on-year hike, it beat forecasts of $1.22 billion from Wall Street.

In a statement, Fastenal said that the revenue increase was the result of higher unit sales that reflected continued strength in underlying market demand. This came mostly from industrial vending and onsite locations.

The company’s products include threaded fasteners in a range that includes bolts, screws, nuts and related items, such as washers.

Fastenal signed almost 5,000 industrial vending devices during the quarter, which is an increase of 16.7% from 12 months ago. 22,073 industrial vending devices were also signed in the year, a rise of 14% from the figure achieved in 2017.

During the year, the company reported profits totaling $751.9 million, which represented $2.62 a share. Total revenue came in at $4.97 billion, according to the report. The company’s operating margin expanded 30 basis points year over year to hit 19% in the quarter. This was attributed to improvements in operating and administrative expenses.

Brian Ducey

Brian graduated from Chaminade High School and the University Of Vermont Kalkin School Of Business with a concentration in Finance. He began his career with Knight Capital Markets, working his way to market maker. Brian later expanded his market repertoire, working with various sell-side research brokerage firms, such as Sidoti & Co., and William O’Neill & Co., as an Account Executive. With over 20 years-experience in the financial industry, Brian has built a unique perspective into “market intelligence” understanding an ability to read the tape and apply second level thinking in a fast paced environment. Brian also carried several market licenses, including the series 7, 24, 55, 65, and 63 licenses as well as previously passing The Connecticut Life and Health Insurance Exam