) April sales slowed versus March due to change in Easter timing.
Nevertheless, sales were significantly better than last year
indicating that the industrial and construction supplies
wholesale distributor's top line is turning around.
April net sales rose 10% year over year to $315.1 million.
Daily sales for the month grew 10.0% to $14.3 million, much
better than April last year. However, daily sales in April were
lower than 11.6% growth in March. Currency was a 0.5% headwind in
Fastenal serves customers in the manufacturing and
non-residential construction markets.
Daily sales to manufacturing customers (representing almost
50% of revenues) grew 8.5%, slightly better than 5.6% last year
but down from 11.4% in Mar 2014.
Daily sales to non-residential construction customers
(representing 20% to 25% of revenues) grew 5.4%, better than 0.8
% in April last year. However, it was slower than 7.6% growth in
After struggling for the past many quarters, Fastenal's top
line turned around in the first quarter of 2014. Fastenal's total
average daily sales growth rate in the first quarter was 8.7%, up
from 4.9% in the prior-year quarter, owing to increase in sales
Though the company witnessed softer sales in January and
February due to harsh weather, sales improved in March. The
double-digit growth in daily sales in March was driven by
favorable timing of Easter and increased investments in stores
that led to improvement in sales. The Easter holiday proved to be
a headwind in April versus a benefit in March.
Management also seems optimistic for top-line and incremental
margin growth in future quarters as underlying markets improve,
vending re-vamps, sales improvement efforts expand and
comparisons remain easy throughout 2014.
Fastenal carries a Zacks Rank #3 (Hold). Better-ranked stocks
in the building products/ construction/materials sector include
Vulcan Materials Co.
United Rentals Inc.
Martin Marietta Materials Inc.
). While Vulcan Materials and United Rentals sport a Zacks Rank
#1 (Strong Buy), Martin Marietta has a Zacks Rank #2 (Buy).
FASTENAL (FAST): Free Stock Analysis Report
MARTIN MRT-MATL (MLM): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
VULCAN MATLS CO (VMC): Free Stock Analysis
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