Fastenal Company (NASDAQ:FAST) surpassed third-quarter profit expectations, driven by heightened demand for its heavy manufacturing equipment and sending the company's shares higher in early Thursday trading.
Industrial supplies wholesalers like Fastenal have seen a boost in demand from non-residential customers, particularly in manufacturing construction projects as part of the Biden administration's efforts to revitalize semiconductor manufacturing within the United States.
Fastenal, headquartered in Winona, Minnesota, reported a net income of $0.52 per share for the quarter ending September 30, 2023, ahead of analyst estimates of $0.50 per share.
The company's quarterly revenue increased by 2.4% to $1.84 billion from the previous year, with the heavy manufacturing segment contributing 43.2% to the company's total sales.
Net earnings for the quarter were $295.5 million, marking a 3.8% increase from the same period last year. Diluted net earnings per share increased by 4.1% to $0.52.
Fastenal's operating income for the quarter was $386.7 million, reflecting a 2% increase from the comparable year-ago quarter.
Shares of Fastenal were up nearly 7% in midmorning trading on Thursday.