Fastenal shares spike after earnings, hit 52-week high

Shares of development supplier Fastenal jumped around 5 percent Wednesday after the agency posted higher-than-anticipated quarterly income.

prior to the bell, Fastenal introduced fourth-quarter revenue per share of 40 cents. Analysts polled by way of Reuters anticipated the company to file a profit of 38 cents per share.

The agency’s stock hit a new fifty two-week excessive Wednesday and was on p.c. for its perfect day due to the fact that Nov. 9. It was also the top advancer in the S&P 500, which chopped around the flatline.

“Relative to our version, upside was essentially driven by way of more desirable than anticipated gross margins of 49.eight% (vs. our forty eight.7% estimate),” analysts at KeyBanc Capital Markets mentioned in a Wednesday note. “We be aware gross margins had been an area of focal point for traders, and we think expectations for the quarter were most often low.”

Fastenal’s inventory has been on a tear during the last three months, surging more than 30 % over that period of time.

Fastenal three-month chart

source: FactSet

Disclosures: KeyBank expects to receive or intends to are looking for compensation for investment banking services from Fastenal. KeyBanc makes a market in Fastenal.