Fastenal Q2 2020 Earnings Report
Key Takeaways
Fastenal reported a 10.3% increase in net sales for Q2 2020 compared to Q2 2019, driven by surge sales of PPE which offset declines in traditional business. Diluted net earnings per share increased by 16.7% to $0.42. The company experienced shifts in product mix and end market performance due to pandemic-related events.
Net sales increased by 10.3% due to surge sales of PPE offsetting declines in traditional business.
Diluted net earnings per share increased by 16.7% to $0.42.
Gross profit margin declined by 240 basis points to 44.5% due to product mix changes and lower safety product margins.
Manufacturing and non-residential construction end markets were down 9.4% and 10.3%, respectively, while the government business was up 266.7%.
Fastenal
Fastenal
Forward Guidance
The company expects surge-type PPE orders to decline as they enter the third quarter of 2020. Whether our traditional business continues to improve in the third quarter from June levels of activity, and at what pace, remains difficult to project.