Fastenal Shares Fall After Mixed Q2 Earnings

Fastenal Company FAST reported Q2 revenue of $1.508 billion (a decrease of 0.1% year-over-year), missing the consensus of $1.51 billion.
Gross margin expanded by 200 bps to 46.5%, product and customer mix favorably impacted gross profit percentage.
Operating income increased slightly to $317.8 million, and margin expanded by 14 bps to 21.1%.
The company generated an operating cash flow of $446.3 million in the first six months of 2021, a decline of 9.3% Y/Y.
The demand from traditional manufacturing and construction customers in the quarter was significantly stronger than in the earlier period.
EPS of $0.42 beat the consensus of $0.41.
The overall impact of product pricing on net sales in Q2 was 80 to 110 basis points. Daily sales to national account customers increased 1.4% Y/Y.
The company signed 87 new Onsite locations in the quarter, with 1,323 active sites on June 30, 2021, representing an increase of 9.2% from June 30, 2020.
Inventory was $1.33 billion, a decrease of 5.3%, over the second quarter of 2020.
As of June 30, 2021, cash and cash equivalents were $321.8 million, compared to $201.5 million a year ago.
The company’s total debt stood at $405 million at the end of Q2, or 12.3% of total capital.
Price action: FAST shares are trading lower by 2.24% at $54.81 in premarket on the last check Tuesday.