Fastenal Q3 Profit Falls 35%, Narrowly Misses Estimates (FAST)

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Fastenal Company (FAST), which makes nuts and bolts, said its third quarter profit fell 35% from last year, missing analyst estimates.

The Winona, Minnesota-based company reported third quarter net income of $47.6 million, or 32 cents per share, down from $72.9 million, or 49 cents per share. Net sales plunged 22% from last year, to $489.3 million.

On average, Wall Street analysts expected a slightly higher profit of 33 cents per share, on matching revenue of $489.3 million.

Fastenal shares fell 93 cents, or -2.4%, in morning trading Monday.

The Bottom Line
We removed shares of FAST from our “recommended” list last Sept.29, when the stock was trading at $50.38. The company has a dividend yield of 1.88%, based on Friday’s closing stock price of $39.39. The stock has technical support in the $35-$36 price area. If the shares can firm up, we see overhead resistance around the $42-$45 price levels. We would remain on the sidelines for now.

Fastenal Company (FAST) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

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