By Scott Kanowsky
Investing.com -- Shares in Fastenal Company (NASDAQ:FAST) dropped by as much as 6% on Wednesday after the industrial distributor reported weaker than expected revenue in the second quarter.
Net sales rose to nearly $1.78B, up by 18% compared to the same quarter a year ago, but narrowly missing analyst expectations of $1.79B.
The Winona, Minnesota-based company said it got a boost from strong underlying demand for manufacturing and construction equipment. But the firm added that the uptick was tempered by foreign exchange headwinds, suggesting a negative impact from a recent strengthening of the U.S. dollar.
Fastenal also flagged that costs for fuel and transportation, as well as for key metals and plastics, are at "elevated but stable levels" as price inflation in the U.S. soars.
Meanwhile, second-quarter net profit rose to $287.1B, or $0.50 on a per share basis, in line with expectations and up from $239.7M and $0.42 per share in the same period last year.