Fastenal (FAST) Stock Down On Q2 Earnings And Sales Miss
Zacks Investment Research | Jul 10, 2019 10:38PM ET
Fastenal Company’s (NASDAQ:FAST) shares dropped 5.1% following second-quarter 2019 earnings release, wherein the top and bottom lines missed the respective Zacks Consensus Estimate, thanks to slower activity levels in the quarter.
Earnings & Sales Detail
Fastenal reported earnings of 36 cents per share in the quarter, missing the consensus mark by a penny. The reported figure also compares unfavorably with the year-ago profit level of 37 cents.
Net sales of $1.37 billion lagged the consensus mark of $1.38 billion. Sales growth slowed to 7.9% year over year, marking the first sub-10% reading in nine quarters. The increase was driven by higher unit sales, primarily related to growth drivers, with notable contributions from industrial vending, Onsite locations and construction. Higher underlying market demand than second-quarter 2018 also contributed to the growth.
The company’s daily sales growth was recorded at 7.9%, lower than 12.2% and 13.1% increase in first-quarter 2019 and the prior-year quarter, respectively, as end-market activity slowed down in the quarter.
On a monthly basis, daily sales improved 7% in June, 9.5% in May and 12.5% in April compared with 13.5%, 12.5% and 13.4%, respectively, in the prior-year months.
Daily sales of Fastener products (mainly used for industrial production and accounting for approximately 34.5% of first-quarter sales) rose 5.5% year over year.
Non-fastener products’ daily sales (mainly used for maintenance and representing 65.5% of the quarterly sales) increased 9.5% year over year.
Fastenal Company Price, Consensus and EPS Surprise
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