Shares of Fastenal Co. (FAST, Financial) fell about 4% on Thursday after announcing second-quarter results. The company posted earnings of 36 cents per share on $1.37 billion in revenue, reflecting 7.9% growth from the prior-year quarter. The company fell 1 cent short of earnings estimates and $10 million short of revenue expectations.
The revenue growth was due to higher unit sales in industrial vending, onsite locations and construction, as well as positive headwinds from greater demand.
The gross profit as a percentage of net sales declined 180 basis points to 46.9%. The inflation on product margins had a strong negative impact. Operating income as a percentage of net sales declined to 20.1% due to the lower gross margin.
During the quarter, Caxton Associates (Trades, Portfolio) exited its position in the stock, while Jeff Auxier (Trades, Portfolio) established a 3,300-share holding. Diamond Hill Capital (Trades, Portfolio) and John Hussman (Trades, Portfolio) reduced their holdings by 27.11% and 19.53%.
Shares of PriceSmart Inc. (PSMT, Financial) gained more than 1% after the company announced third-quarter results. Revenue grew 0.8% from the prior-year quarter to $788.56 million, falling $4.4 million short of expectations. Earnings of 55 cents per share missed estimates by 4 cents.
Net merchandise sales rose 0.6% from the year-ago quarter to $755 million. Further, currency exchange rate fluctuations negatively impacted net merchandise sales.
During the quarter ended March 31, Paul Tudor Jones (Trades, Portfolio) established a new position, buying 14,301 shares. Jim Simons (Trades, Portfolio)' Renaissance Technologies boosted its holding 0.27% to 403,700 shares.
Shares of AAR Corp. (AIR, Financial) jumped 8% after the company posted fourth-quarter earnings of 64 cents per share on revenue of $562.7million, reflecting 18.8% year-over-year growth. The company beats earnings estimates by 2 cents and revenue expectations by $33.21 million.
"We are exceptionally pleased with our strong performance in the fourth quarter," President and CEO John M. Holmes said. "Our double-digit organic sales growth and solid cash flow generation were driven by the continued strength in our parts supply and programs activities."
The gross profit margin declined to 16.8% from 17.9% in the prior-year quarter. Selling, general and administrative expenses as a percentage of sales were 11.2%, down from 13.1% last year.
The cash flow from operating activities was $44.1 million.
Looking ahead to 2020, the company expects sales between $2.1 billion and $2.2 billion and adjusted diluted earnings per share in the range of $2.45 to $2.65.
During the quarter, Ken Fisher (Trades, Portfolio) reduced his stake by 2.13% to 1,008,851 shares, while Mario Gabelli (Trades, Portfolio) boosted his postition by 50.77% to 243,200 shares.
Disclosure: The author holds no positions in any stocks mentioned.
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