On Wednesday, Fastenal Company (NASDAQ: FAST) announced its financial results for the second quarter of fiscal 2018. Shares of the company increased 4.6% in premarket trading on Wednesday after the earnings announcement.
According to the company, revenue for the second quarter increased from $1.122 billion to $1.268 billion, which beat analysts’ estimates of $1.257 billion. The company said that the increase in net sales was motivated by “higher unit sales related primarily to continued strength in underlying market demand and contribution from the company’s growth drivers”.
Net income for the second quarter, according to the company, increased from $148.9 million, or 52 cents per share, for the same period last year, to $211.2 million, or 74 cents per share. The results also beat analysts’ estimates of 66 cents per share.
“We achieved significant operating cost leverage in the period, including employee-related expenses. Lower gross margin partly reflects a difficult comparison, but also a continued challenging price/cost landscape,” the CEO of the company said in the presentation on Wednesday.
In addition, the company signed 5,537 industrial vending devices during the second quarter, increasing 13.4% from the number for the same period last year. The company signed 81 new Onsite locations during the second quarter, which increased 19.1% from 68 signings in the same period last year.