Benzinga | Jul 13, 2021 08:12AM EDT

Fastenal Shares Fall After Mixed Q2 Earnings

* Fastenal Company (NASDAQ:FAST) reported Q2 revenue of $1.508 billion (a decrease of 0.1% year-over-year), missing the consensus of $1.51 billion.

* Gross margin expanded by 200 bps to 46.5%, product and customer mix favorably impacted gross profit percentage.

* Operating income increased slightly to $317.8 million, and margin expanded by 14 bps to 21.1%.

* The company generated an operating cash flow of $446.3 million in the first six months of 2021, a decline of 9.3% Y/Y.

* The demand from traditional manufacturing and construction customers in the quarter was significantly stronger than in the earlier period.

* EPS of $0.42 beat the consensus of $0.41.

* The overall impact of product pricing on net sales in Q2 was 80 to 110 basis points. Daily sales to national account customers increased 1.4% Y/Y.

* The company signed 87 new Onsite locations in the quarter, with 1,323 active sites on June 30, 2021, representing an increase of 9.2% from June 30, 2020.

* Inventory was $1.33 billion, a decrease of 5.3%, over the second quarter of 2020.

* As of June 30, 2021, cash and cash equivalents were $321.8 million, compared to $201.5 million a year ago.

* The company's total debt stood at $405 million at the end of Q2, or 12.3% of total capital.

* Price action: FAST shares are trading lower by 2.24% at $54.81 in premarket on the last check Tuesday.