- First S&P500 company to report this earning season
** charts before earnings **
** charts after earnings **
Fastenal beats by $0.08, reports revs in-line
- Reports Q2 (Jun) earnings of $0.74 per share, $0.08 better than the Capital IQ Consensus of $0.66; revenues rose 13.1% year/year to $1.27 bln vs the $1.26 bln Capital IQ Consensus.
- This increase in revenues was driven by higher unit sales related primarily to continued strength in underlying market demand and contribution from the co's growth drivers, most notably industrial vending and Onsite locations.
- "Our gross profit, as a percentage of net sales, declined 110 basis points to 48.7% in the second quarter of 2018 from 49.8% in the second quarter of 2017. We instituted a modest price increase in the second quarter of 2017 ahead of inflationary pressures that we were seeing in our supply chain, which produced an unseasonably strong gross profit margin in the three-month period. As inflation in the marketplace began to move through our income statement, it began to reduce the gross profit margin benefit we saw in the second quarter of 2017. Additional components that adversely affected our gross profit percentage during the second quarter of 2018 included higher freight expenses and changes in product and customer mix. Relative to the first quarter of 2018, our second quarter of 2018 gross profit percentage was flat. Challenges from product inflation and mix were offset by improvements in our freight management and leverage related to growth."
No comments:
Post a Comment