Fastenal Co. Q3 Results Meet Estimates

(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST) Friday reported a rise in third-quarter profit, as net sales grew about 14 percent mainly due to higher unit sales. Earnings per share, as well as revenues met analysts' expectations.

For the third quarter ended September 30, the company posted net earnings of $133.31 million or $0.45 per share, up from $119.35 million or $0.40 per share in the previous year.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Pre-tax earnings increased to $212.99 million from $188.64 million in the previous year.

Net sales for the quarter grew 14.3 percent to $980.81 million from $858.42 million in the prior-year quarter. Wall Street expected revenues of $980.10 million for the quarter.

The company attributed the increase in net sales mainly to higher unit sales. But, net sales were impacted by slight inflationary price changes in its non-fastener products and some price deflation in fastener products, the firm said.

According to Fastenal, its non-fastener business demonstrated greater relative resilience over the last several years, compared to fastener business and to the distribution industry in general.

The company said its daily sales, i.e., total net sales for the period, divided by the number of business days, were $15.33 million, an increase of 14.3 percent from $13.41 million a year earlier.

As at the end of September 2014, the number of stores totaled 2,647, down 1.5 percent from last year.

In addition, Fastenal noted that beginning in 2015, it intends to shorten its earnings releases. The company will continue to provide a concise business update, some sales growth, store, vending, and headcount statistics, and a brief narrative of income statement and operational working capital.

The remaining information will be included in its quarterly and annual filings.

Fastenal shares closed Thursday's trading at $44.70, down $1.12 or 2.44 percent.