Summary
Fastenal Company's (FAST) third-quarter 2017 10-Q filing shows a robust performance with net sales increasing by 11.8% year-over-year to $1,132.8 million. This growth was primarily driven by a 13.6% increase in daily sales, reflecting improved market demand indicated by a strong Purchasing Managers Index, and successful execution of the company's growth initiatives. Profitability remained strong, with operating income increasing by 12.7% to $228.5 million, and net earnings rising by 12.7% to $143.1 million, translating to diluted EPS of $0.50, up from $0.44 in the prior year's quarter. While gross profit margin slightly decreased to 49.1% due to product and customer mix shifts and the impact of hurricanes, operating and administrative expenses as a percentage of sales improved, demonstrating effective cost management. The company also completed a strategic acquisition of Manufacturers Supply Company (Mansco) in March 2017, which contributed positively to sales and earnings.
Financial Highlights
51 data points| Revenue | $1.13B |
| Cost of Revenue | $576.90M |
| Gross Profit | $555.90M |
| SG&A Expenses | $327.50M |
| Operating Income | $228.50M |
| Interest Expense | $2.60M |
| Net Income | $143.10M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.15B |
Key Highlights
- 1Net sales for the third quarter of 2017 grew by 11.8% to $1,132.8 million, indicating strong top-line performance.
- 2Diluted earnings per share (EPS) increased to $0.50 in Q3 2017, a 13.6% rise from $0.44 in Q3 2016.
- 3Operating income saw a healthy increase of 12.7% to $228.5 million, demonstrating efficient operations.
- 4The company acquired Manufacturers Supply Company (Mansco) on March 31, 2017, for $59.3 million, which contributed $40.4 million in net sales and $4.6 million in net earnings for the nine months ended September 30, 2017.
- 5Growth initiatives, including National Account contracts, Onsite locations, and industrial vending machines, are showing strong traction, contributing to sales growth.
- 6Net cash provided by operating activities increased significantly to $455.9 million for the nine months ended September 30, 2017, up from $386.9 million in the prior year.
- 7The company maintained a strong balance sheet with total assets of $2,901.6 million and total stockholders' equity of $2,026.3 million as of September 30, 2017.