Fastenal drops after in-line quarter, margin pressure as peers follow
Shares of companies in the industrial and construction supply space are falling after peer Fastenal (FAST) reported first quarter results. RESULTS: Before the market open on Wednesday, Fastenal reported Q1 earnings per share of 61c on revenue of $1.186B, in-line with analyst estimates. One red herring in the company's results were gross margins, which came in at 48.7%, lower than the 49.4% reported in the same quarter last year. The company blamed the decline on changes in product and customer mix. Specific components that adversely affected its gross profit percentage included changes in product and customer mix and freight expenses that were only partly offset by pricing actions, Fastenal said. PRICE ACTION: Shares of Fastenal are down 6.6% to $50.82 in afternoon trading. PEERS ALSO LOWER: Other companies in the space trading lower after Fastenal's results including Grainger (GWW), HD Supply (HDS), MSC Industrial (MSM) and Wesco (WCC).