Fastenal Company FASTdelivered strong results in the first quarter of 2018 owing to higher market demand, growth in industrial vending business and existing Onsite locations. Sales through vending devices consistently grew at a strong double-digit pace in the quarter, due to the increase in the installed base and higher revenue per device.
Earnings & Sales Detail
Fastenal’s adjusted earnings of 61 cents per share in the first quarter of 2018 were in line with the Zacks Consensus Estimate. Earnings surged 30.6% year over year.
Net sales of $1.19 billion surpassed the Zacks Consensus Estimate of $1.18 billion. Sales grew 13.2% year over year on the back of higher underlying market demand, growth in industrial vending business and existing Onsite locations. The acquisition of Manufacturers Supply Company (Mansco) contributed 1.3% to sales.
Fastenal’s daily sales grew 13.2% in the quarter, lower than the 14.8% increase in the prior-year quarter.
On a monthly basis, daily sales improved 13.1% in March, 14.8% in February and 12% in January, compared with a rise of 8.4%, 6.1% and 3.8%, respectively, in the prior-year quarter.
Daily sales of Fastener products (used mainly for industrial production and accounting for approximately 35% of the company’s first-quarter sales) rose 11.8% in the quarter, 3.7% of which came from the acquisition of the Mansco business.
Non-fastener product Daily sales (used mainly for maintenance and represented 65% of the quarterly sales) increased 14.5% year over year.
Fastenal Company Price, Consensus and EPS Surprise