Fastenal Co. saw its sales and earnings increase in its latest fiscal quarter, but not enough to meet analysts’ expectations.
The Minnesota-based fastener and industrial product distributor on Thursday posted $1.88 billion in net sales during the second quarter of the year, up nearly 6% compared to the same quarter last year but shy of the $1.89 billion anticipated by Wall Street forecasters.
The company’s operating income climbed 3% over that span to $395 million, while gross profit and net earnings increased by 3.6% and 3.8%, respectively, year-over-year. Fastenal reported diluted earnings per share of $0.52, up 4.6% over last year but also just shy of expectations.
The company’s report also indicated that gross profit and operating income declined slightly as a percentage of its net sales. Its profit numbers were affected by higher overhead costs, particularly working capital and increased costs for inbound freight, company executives said.
Fastenal officials credited higher unit sales for the overall increase in revenue — a result of growth at its “Onsite” locations — which offset a revenue decline in the construction and reseller markets. Sales to the company’s manufacturing customers rose by more than 10% during the quarter, while non-residential construction sales slid by 8.8%.
Among its product categories, sales of fasteners were flat in the latest three-month window. Safety supplies rose by nearly 8%; all other supplies increased by nearly 10%.
The company — no. 4 on ID’s Big 50 list of industrial distributors — also released details for its June sales on Thursday, including a 4.7% increase in sales compared to June of 2022.
Shares of the company’s stock reportedly declined by 2.5% in premarket trading Thursday.
