Fastenal beat third-quarter profit estimates on Thursday on higher demand for its heavy manufacturing equipment, sending its shares up nearly 4% in premarket trading.
Industrial supplies wholesalers have benefited from an uptick in demand from their non-residential customers as spending on manufacturing construction projects continued to recover amid efforts by the Biden administration to bring semiconductor manufacturing back to the United States.
The Winona, Minnesota-based company reported a net income of 52 cents per share for the quarter ended Sept. 30, beating analysts’ estimates of 50 cents per share, as per LSEG data.
Its quarterly revenue rose 2.4% to $1.84 billion from a year earlier with the heavy manufacturing segment contributing 43.2% to the company’s total sales.
Analysts on average were expecting revenue of $1.85 billion in the third quarter.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Shweta Agarwal)
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