Fastenal, the distributor of nuts, bolts, and other supplies, has announced strong sales and earnings for the third quarter of this year. Despite softer demand from manufacturing and construction customers, the company's onsite business and sales to national accounts experienced growth.
In Q3, Fastenal reported earnings of $295.5 million, or 52 cents per share. This is an increase from $284.6 million, or 50 cents per share, in the same period last year. Analysts surveyed by FactSet had predicted earnings of 50 cents per share. The company's sales also saw a growth of over 2%, reaching $1.85 billion, aligning closely with analysts' expectations.
Onsite Locations Drive Sales
Fastenal attributed its sales growth to the increased unit sales through onsite locations. These are sales and service operations carried out from within or near the customer's facility. The company managed to offset the soft demand from manufacturing customers and lower sales to construction customers. However, it did face some challenges due to currency fluctuations.
Stable Prices and Strong National Account Sales
Fastenal mentioned that its price increases have stabilized, resulting in only a modest benefit to sales during the third quarter. The company emphasized that prices are mostly stable at present. Additionally, it highlighted that the daily sales rate of national accounts remained robust compared to non-national accounts, including regional customers and smaller businesses.