FAST’s May Sales Exceed Estimates

Analysts at Piper Jaffray reiterate their "overweight" rating on Fastenal FAST. FAST posted of 21.1% y/y growth in May sales, beating the estimates. The analysts say, “We believe management is doing a good job of controlling costs while driving top-line through continued strategic store openings (7 during May) and judicious personnel decisions.” “Store headcounts peaked in October of 2008 at 8343. Management has taken a similar approach with other less prevalent non-store and administrative personnel, which boosts our confidence in the company's ability to meet or beat our estimates for the quarter and FY10…. With the composite ISM index having been above the key 50 level (an indicator for growth) for ten consecutive months, we believe manufacturers continue to grow more positive in their outlook as if the worst of the downturn had passed,” Piper Jaffray adds. More Analyst Ratings here