Fastenal Reveals Mixed 2Q Results as Sales Disappoint

By IndustrialsFOXBusiness

Fastenal (NASDAQ:FAST) logged a healthier-than-expected 19% rise in second-quarter earnings on Thursday, but the industrial hardware supply company’s sales failed to meet forecasts.

The Winona, Minn.-based company said it earned $112.3 million, or 38 cents a share, last quarter, compared with a profit of $94.1 million, or 32 cents a share, a year earlier. Analysts had called for EPS of 37 cents.

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Revenue increased 15% to $804.9 million, trailing the Street’s view of $808 million. Gross margins slipped to 51.6% from 52.2%.

Like many companies, Fastenal has been hit by the slowing economy and stronger U.S. dollar in recent months. Sales growth eased from north of 20% in the first quarter to 17.3% in April, 13.1% in May and 14% last month.

Shares of Fastenal gained 0.5% to $39.99 Thursday. The shares have dipped almost 9% so far this year, underperforming the broader markets.