NEW YORK (TheStreet) -- Fastenal (FAST) reported better-than-expected revenue and earnings as expected in its first quarter.
The provider of industrial and construction equipment supplies recorded net income of 38 cents a share in the three months to March, comparable to average analyst estimates compiled by Thomson Reuters.
Revenue of $876.5 million grew 8.7% year over year and beat estimates by $6.51 million.
"Our sales growth was hampered in January and February due to a weak economy and foreign exchange rate fluctuations (primarily related to the Canadian dollar)," the company said in a statement. "However, the biggest impact was a severe winter in North America and its negative impact on our customers and our trucking network."
In March, though a weak economy and negative forex rates continued, the weather normalized allowing daily sales growth to expand 11.6%.
By midafternoon, shares had slipped 3.5% to $48.95.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates FASTENAL CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FASTENAL CO (FAST) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."