Fastenal Q1 Profit Rises, Revenues Top View - Update

(RTTNews) - Industrial and construction supplies provider Fastenal Co. (FAST) Friday reported increased profit for the first quarter that met analysts' consensus expectations. Revenues grew year-over-year and topped Wall Street estimates.

Net earnings increased to $111.93 million or $0.38 per share from $109.05 million or $0.37 per share in the same quarter last year.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales advanced to $876.50 million from $806.33 million in the prior year quarter, primarily due to higher unit sales. Analysts had a consensus revenue estimate of $869.99 million for the quarter.

According to the firm, growth in net sales was impacted by slight inflationary price changes in non-fastener products and some price deflation in fastener products, but the net impact was a drag on growth.

Daily sales improved 8.7 percent to $13.91 million while business days were unchanged from last year at 63.

In 2014, sales growth was hampered in January and February due to a weak economy and foreign exchange rate fluctuations, in addition to a severe winter in North America. In March, the weak economy and negative foreign exchange rate fluctuations continued, but the weather normalized and daily sales growth expanded amid support from the Easter timing.

Operating income improved to $178.85 million from $174.76 million, while gross margin fell to 51.2 percent from 52.3 percent.

During the first quarter, the firm bought 200,000 shares of its common stock at an average price of $44.24 per share. The company currently has authority to purchase up to an additional 1.4 million shares of its common stock.

The company believes that its gross profit forecast of 51 to 53 percent is still reasonable for 2014.

FAST closed down 0.4 percent on Thursday at $50.73.