Fastenal (FAST 53.12, -1.00) is lower by 1.9% in pre-market after
reporting in-line results for the fourth quarter.
The wholesale distributor of fasteners, industrial supplies, cutting tools, power tools, and safety products reported in-line fourth quarter earnings of $0.60 per share on a 13.1% yr/yr increase in revenue to $1.23 bln, which was just ahead of expectations.
The revenue growth rate was driven by an increase in unit sales, resulting from strength in underlying market demand. Fastener sales made up 34.4% of fourth quarter revenue while non-fastener products were responsible for 65.6% of quarterly revenue.
Gross margin decreased to 47.7% from 48.8% one year ago due to inflation, the impact of customer and product mix, and higher freight costs.
The company signed 4,980 industrial vending machines during the quarter, representing yr/yr growth of 16.7%. This brought the company's installed device count to 81,137, representing yr/yr growth of 13.6%. Sales conducted through the vending machines continued growing by at least 20.0% during the fourth quarter. The company plans to sign between 23,000 and 25,000 industrial vending machines during 2019.
Fastenal signed 67 new Onsite locations during the fourth quarter, up from 57 signings one year ago. The quarter ended with 894 active onsite locations and the company plans to sign between 375 and 400 new onsite locations during 2019.
The company secured 32 new customer accounts with a multi-site contract. Revenue from national accounts made up 52.4% of total revenue during the fourth quarter. Daily sales to national accounts increased 18.1% yr/yr.
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