(Reuters) – Fastenal surpassed fourth-quarter profit and revenue estimates on Thursday, as higher demand from manufacturers for its onsite products boosted sales of its products, such as safety gloves, power tools and other industrial equipment.
Shares of the Winona, Minnesota-based company rose 2.3% in premarket trading.
An uptick in demand from non-residential customers coupled with the Biden administration’s infrastructure spending blitz has continued to boost demand for industrial equipment that Fastenal supplies.
Fastenal said it experienced higher unit sales due to growth at its newly opened onsite locations and as customers accepted incremental price hikes.
The nuts and bolts distributor’s net income rose to $266.4 million, or 46 cents per share, in the quarter ended December 31, 2023 from $245.6 million, or 43 cents per share, a year earlier.
Analysts on average were expecting a profit of 45 cents per share, as per LSEG data.
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Sales rose 3.7% to $1,758.6 million in the fourth quarter, beating analysts’ estimates of $1,752 million.
(Reporting by Mehr Bedi in Bengaluru; Editing by Tasim Zahid)