3% in premarket trading Wednesday after the industrial supplies distributor reported third-quarter earnings and revenue that topped Wall Street estimates, supported by stronger manufacturing demand and growing sales to large customers.
Manufacturing customers are spending more on production supplies and equipment maintenance, while Fastenal (FAST) continues to gain market share through contracts with large customers.
However, the company lowered its full-year target for weighted device signings to between 27,000 and 29,000 units, compared with its previous goal of 28,000 to 30,000 units.
Its growing exposure to large manufacturers and automated inventory services provides opportunities for further market-share gains, although the company's reduced device-signing target and continued gross-margin pressure highlight potential obstacles to maintaining that momentum.