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Fastenal (FAST) Misses Q2 Earnings and Sales

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Fastenal Company (FAST - Free Report) is a national wholesale distributor of industrial and construction supplies. It distributes its products through company-owned stores mostly located in North America. The company has gradually grown from a fastener distributor to a full-line industrial supplier. 

Weakness in sales of the industrial fasteners, lower sales to customers in the oil & gas industry, a stronger U.S. dollar, softness in the Canadian business and overall weakness in the industrial economy is hurting the company’s sales. However, Fastenal’s vending trends are improving as efforts on improving the quality of signings/installs paid off.

Investors should also note the recent earnings estimate revisions for FAST has been mostly downwards. However, FAST has an average history in earnings season. Fastenal has delivered two positive earnings surprises in the last four quarters, making an average positive surprise of 0.45%.

Currently, FAST has a Zacks Rank #3 (Hold), but that could definitely change following Fastenal’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

 

FASTENAL Price and EPS Surprise

FASTENAL Price and EPS Surprise | FASTENAL Quote

Earnings: FAST missed earnings. Our consensus earnings estimate called for EPS of $0.48/share, and the company reported EPS of $0.45/share. Investors should note that these figures take out stock option expenses.

Revenues: FAST reported revenues of $1.01 billion, which missed our consensus estimate of $1.02 billion.

Key Stats to Note: Fastenal’s total average daily sales increased 1.6% in the second quarter of 2016, much lower than a 5% increase in the prior-year quarter. It was also softer than 1.9% increase reported in the first quarter.

Share price: Share prices declined 0.8% in the pre-market trading.

Check back later for our full write up on this FAST earnings report later!

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