Fastenal Company (NASDAQ: FAST) stock recovered over 1.7% on 11th October, 2018 post a weak trading session yesterday, with the stock falling over 7.14%. The warning that new U.S. tariffs on China-sourced goods are “directly impacting” customers of the distributor of industrial and construction supplies led to the negative sentiment. The company has posted better than expected results for the third quarter of 2019. More than 10 percent of Fastenal’s products are made in China, and much of the effect will be felt in its fasteners business. While the company wasn’t hurt much by the first wave of tariffs in the China-U.S. trade war, the outlook changed with duties that went into effect Sept. 24.
FAST in the third quarter of FY 18 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 67 cents. The company had reported the adjusted revenue growth of 13 percent to $1.28 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $1.27 billion. This increase was driven by higher unit sales related primarily to continued strength in underlying market demand and contribution from our growth drivers, most notably industrial vending and Onsite locations. A lesser contributor to our sales growth in the third quarter of 2018 was higher product pricing as a result of increases instituted at the end of the fourth quarter of 2017 and during July and August of 2018 to mitigate inflation in the marketplace. Fastener products represented 34.7% of sales in the third quarter of 2018. Daily sales of fastener products grew 10.8%. Our sales of non-fastener products represented 65.3% of sales in the third quarter of 2018 and grew 14.9% on a daily basis.
Moreover, FAST has signed 5,877 industrial vending devices during the third quarter of 2018, an increase of 23.2% compared to the third quarter of 2017, and signed 17,093 industrial vending devices during the first nine months of 2018, an increase of 13.3% compared to the first nine months of 2017. The company’s installed device count on September 30, 2018 was 78,706, an increase of 14.0% over September 30, 2017. Sales through our vending devices continued to grow at a pace of approximately 20% in the third quarter of 2018 due to the increase in the installed base
The company has also signed 88 new Onsite locations during the third quarter of 2018 compared to 81 signings in the third quarter of 2017, an increase of 8.6%.