On Wednesday, Fastenal Company (NASDAQ: FAST) announced its financial results for the first quarter of fiscal 2018. Shares of the company dropped 3.0% in premarket trade today.
According to the company, revenue for the first quarter increased 13% to $1.19 billion, which was in line with the analysts’ estimates. The increase in revenue was due to the acquisition of Manufacturers Supply Company, which increased revenue by 1.3 percentage points, and higher unit sales. Daily sales rose 13.2% for the first quarter, which was lower than the 14.8% increase for the same period last year.
Additionally, net income for the first quarter rose from $134.2 million, or $0.46 per share, for the same period last year, to $174.3 million, or $0.61 per share, which was also matched analysts’ estimates of $0.61 per share.
The company also reported in its statement that accounts receivable increased 19.8% to $688.6 million for the first quarter of fiscal 2018.
In the first quarter, gross margin dropped 73 basis points year-over-year to 48.7%. According to the company, the drop was due to change in product and customer mix, the addition of Mansco, higher product and freight expenses. In addition, operating margin was 19.8% for the first quarter, and the decrease was mainly due to an improvement in operating and administrative expenses and offset by a decline in gross profit.