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Key Takeaways
- Fastenal’s revenue got a lift even as the distributor of fasteners and other commercial products’ CEO said market activity was “challenging.”
- The daily sales rate for non-fastener products increased 4.2% year-over-year. A drop in the daily sales rate for fasteners was less than in the previous quarter.
- The company said it was encouraged by its efforts to add new customers.
Shares of Fastenal (FAST) rose Friday after revenue at the distributor of fasteners, safety supplies, tools, and other commercial products increased because it had more large customers and onsite locations.
The biggest supplier of fasteners in North America reported second-quarter adjusted earnings per share of $0.51, with revenue rising 1.8% to $1.92 billion. Both were in line with estimates.
Revenue was boosted by non-fastener products, which had a daily sales rate (DSR) 4.2% above the same period last year. The fastener DSR fell 3%, although that was a smaller decline than the 4.4% in the first quarter when the company said it faced “poor demand.”
CEO Daniel Florness said in a presentation that market activity remained “challenging,” pointing to a sub-50 reading for the Institute for Supply Management’s Manufacturing Purchasing Managers Index (PMI), which indicates contraction in the sector. However, he added that “efforts to accelerate customer acquisition remain encouraging,”
Ahead of the report, Fastenal shares were basically flat year-over-year. The stock was recently up about 4%.
The company said in a news release that Florness would hand the role of president to Jeff Watts, currently its chief sales officer, on Aug. 1.
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