Fastenal Tops Expectations in Q2, Stock Shoots Higher

Winona, Minn.-based Fastenal (FAST) reported very positive earnings numbers Thursday morning, which has spiked the company’s stock by nearly 5 percent in early trading. Growth for Fastenal has been … well, fast, and the report from the company reflects as much.

The stock is up to nearly $42 per share in the early moments of trading after reporting Q2 earnings per share of 38 cents, which beat predictions by 1 cent, and revenue of $805 million was $2 million better than expected and showed a 15 percent growth year-over-year. The company reported in its press release that its more than 2,400 stores had posted double-digit sales increases every month of 2012 compared to the same month in 2011 – capped by June’s 14 percent sales increase over June 2011 sales totals. Net profit for the company was reported at more than $112 million, a 19-percent jump, despite including losses on sales of some assets. This marked the third consecutive quarter of growth for the company.  The company opened 53 new stores in the first half of 2012, down from the mid-70s during the same period of 2011.

The company held a conference call Thursday morning to discuss the report, and that can be accessed at http://investor.fastenal.com/events.cfm.

There is much to be excited about with Fastenal’s report, and hedge funds like Louis Navellier’s Navellier & Associates and David Stemerman’s Conatus Capital Management should benefit greatly from this report. Navellier had staked nearly $53 million in the company at the end of the March, and Conatus was in for about $54 million after selling 46 percent of its holdings during the quarter. Timothy S. Peterson’s Regiment Capital had a $78.5 million put on the stock at the end of March, while Bart Baum’s Ionic Capital Management posted a $44 million call order at the same time.