On Wednesday, Fastenal Company (NASDAQ: FAST), the industrial and construction supplies maker, announced its financial results for the third quarter of 2017. Shares of the company dropped 1.9% in premarket trading on Wednesday.
For the third quarter, net sales rose 11.8% from $1.01 billion to $1.13 billion, beating analysts’ estimates of $1.12 billion. The sales were motivated by improved markets and addition to Fastenal’s industrial vending and Onsite locations.
Net income increased from $126.9 million, or $0.44 per share, for the same period last year, to $143.1 million, or $0.50 per share, in the third quarter. The earnings results were in line with expectations of $0.50 per share.
However, according to the company, employee-related costs increased 12.3% for the third quarter. The growth in sales and earnings, an increase in headcount, higher healthcare costs and the inclusion of workers from Mansco, or Manufacturers Supply Co. led to higher bonuses and commissions, which further leading to the increase of employee-related costs.
“The third quarter of 2017 ended with September daily sales growing 15.3%, we have not seen daily sales growth above 15% for almost three years (late 2014),” Dan Florness, the President and Chief Executive Officer of the company, said in the statement on Wednesday.
“We are pleased with the trust our customers place in Fastenal, and I am proud of the success realized by each member of the 'Blue Team'. Our growth drivers, combined with a solid economy, are resulting in great growth,” he added.