FAST - Why Fastenal Shares Popped Thursday
2023-10-12 11:28:38 ET
Industrial supplier Fastenal (NASDAQ: FAST) can be a bellwether for how the American economy is performing. The company reported third-quarter earnings today, and investors are celebrating the results. After popping as much as 8%, Fastenal shares were higher by 6.1% as of 10:55 a.m. ET Thursday morning.
Fastenal said its third-quarter sales increased 2.4% year over year, meeting analyst expectations. But a better-than-expected operating profit margin helped the company beat Wall Street estimates on the bottom line. Overall, continued economic strength has given investors confidence in Fastenal's business, resulting in a more than 10% gain for the stock over the last month.
Fastenal provides industrial supplies, including fastener, safety, janitorial, and other products from about 3,400 branches and on-site locations. That means it relies on growth from many business sectors to power its earnings. The manufacturing sector is where Fastenal reported the most growth in the third quarter.
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Why Fastenal Shares Popped Thursday