The 10-second takeaway
For the quarter ended June 30 (Q2), Fastenal met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins increased, net margins improved.
Fastenal booked revenue of $804.9 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $809.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $701.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.38 for Q2 were 19% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 60 basis points worse than the prior-year quarter. Operating margin was 22.2%, 80 basis points better than the prior-year quarter. Net margin was 14.0%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $816.0 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $3.18 billion. The average EPS estimate is $1.45.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fastenal is hold, with an average price target of $45.00.
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