Fastenal (FAST) Stock Trades Up, Here Is Why

What Happened?

Shares of industrial supplier Fastenal FAST jumped 3.3% in the morning session after the industrial supplies company reported second-quarter results that topped Wall Street expectations for both profit and revenue. 

The maker of industrial and construction fasteners posted earnings per share of $0.29 on revenue of $2.08 billion. This surpassed analysts' average estimates, which called for earnings of $0.28 per share on $2.06 billion in revenue. The company's sales grew 8.6% year-over-year, while earnings per share jumped 12.7%. This growth was attributed to strong performance in its fasteners and safety supplies segments, which grew 10.7% and 9.0% respectively, driven by robust demand from heavy manufacturing customers. Despite what the company called "sluggish" market conditions, it successfully grew through improved customer contract signings.

After the initial pop the shares cooled down to $44.32, up 2.4% from previous close.

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What Is The Market Telling Us

Fastenal’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Fastenal is up 24.7% since the beginning of the year, and at $44.32 per share, has set a new 52-week high. Investors who bought $1,000 worth of Fastenal’s shares 5 years ago would now be looking at an investment worth $2,042.