Fastenal stock drops 5.5% as revenue falls a bit, even though price rises boosted growth to up to 6.9%

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Fastenal Co. shares
FAST,
-1.01%

Premarket trading fell 5.5% on Wedneday after the manufacturer of fasteners and tools reported second-quarter profits that exceeded expectations, but revenue that was a little below. Net income rose from $239.7 millions, which was 42 cents per share, to $287.1million or 50 cents per share. Revenue rose 18.0% to $1.78 Billion. FactSet consensus was 50c for earnings per share, and $1.79billion for revenue. According to the company, pricing increases contributed to about 6.6% to 6.9% growth in sales. This is because prices were increased to offset inflation for its products, especially fasteners, and transportation services. According to the company, it didn’t increase prices in the second quarter. The bulk of the price boosts were due to actions taken during the first quarter. The company also stated that inventory balance has increased due to “significant inflation” increasing the cost of inventory. This was in response to customers’ growth and supply chain needs. Fastenal’s stock has dropped 15.2% over the past three months through Tuesday while the S&P 500
SPX,
-0.92%

has lost 14.1%.

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