Shares of Fastenal Co. (FAST) soared more than 8% in trading after the wholesale distributor of industrial and construction supplies reported better-than-expected Q3 earnings. The company reported earnings of $0.52 per share in the third quarter, up one cent year-over-year and also higher than consensus expectations of $0.51 per share.
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FAST’s Fasteners Business Comprised Over 30% of Sales
FAST posted net sales of $1.9 billion in the third quarter, an increase of 3.5% year-over-year and in line with analysts’ expectations. The company’s fasteners business comprised more than 30% of the total revenues in the third quarter.
Additionally, Fastenal reported that its daily sales were impacted by Hurricane Helene, which struck six U.S. states about two weeks ago. The company estimated that the disruption dragged down its daily sales by 5 to 25 basis points during the quarter.
Despite this setback, Fastenal’s daily sales rate increased by around 1.9% due to the presence of an extra selling day during the third quarter. Daily sales rate measures average sales per day.
Is FAST Stock a Good Buy?
Analysts remain cautiously optimistic about FAST stock, with a Moderate Buy consensus based on two Buy ratings and five Hold ratings. Over the past year, FAST stock has increased by more than 30%, and the average FAST price target of $73 implies a downside potential of 1.7% from current levels. Many of these analyst ratings are likely to change following FAST’s results today.
