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Investing.com -- Fastenal Company shares rose over 3% premarket on Monday after the industrial and construction supplies distributor reported second-quarter earnings and revenue that exceeded analyst expectations, driven by improved customer contract signings and pricing actions.
The Winona, Minnesota-based company posted adjusted earnings per share of $0.29 for the quarter ended June 30, 2025, beating the analyst estimate of $0.28. Revenue increased 8.6% to $2.08 billion, slightly above the consensus estimate of $2.07 billion and up from $1.92 billion in the same period last year.
The company’s performance was largely attributed to improved customer contract signings over the past six quarters, with product pricing contributing an increase of 140 to 170 basis points to net sales. Contract sales grew 11% YoY, significantly outperforming non-contract sales which increased just 2.6%.
"The results largely reflect the contribution from improved customer contract signings over the past six quarters," said Fastenal (NASDAQ:FAST) in its earnings release. "Market conditions remained sluggish, providing minimal contribution."
Fastenal’s operating margin improved to 21.0% in the second quarter, up from 20.2% a year earlier. The company experienced growth across all product categories, with safety supplies leading at 10.7% growth, followed by other product lines at 9.0% and fasteners at 6.6%.
The company also reported a 12.4% increase in the number of customer sites spending $50,000 or more per month compared to the same period last year.