CHICAGO, July 13, 2011 /PRNewswire/ -- Zacks.com announces
the list of stocks featured in the Analyst Blog. Every day the
Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently
featured in the blog include: Fastenal Co. (Nasdaq: FAST),
Williams Partners L.P. (NYSE: COP), Williams Companies
Inc. (NYSE: WMB), Enterprise Products Partners LP (NYSE:
EPD) and Kinder Morgan Energy Partners, L.P. (NYSE:
KMP).
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Here are highlights from Tuesday's Analyst Blog:
Fastenal Co. (Nasdaq: FAST) posted a 36% increase in
profit to $94.1 million in the second
quarter of the year from $69.2
million a year-ago.
On a per share basis, profit improved 39% to 32 cents from 23
cents a year ago, nearly meeting the Zacks Consensus
Estimate of 31 cents.
Sales in the quarter rose 23% to $701.7
million, higher than the Zacks Consensus Estimate of
$699 million. Gross profit during the
quarter increased 23% to $366.2
million (52.2%) from $297.7
million (52.1%) in the second quarter of 2010.
The increase in sales was due to aggressive store openings and
an increase in the company's non-residential customers, accounting
for 20%–25% of sales historically. Sales to non-residential
construction increased to 15.8% from 0.5% in the same quarter last
year. Meanwhile, sales to manufacturing customers (accounting for
50% of sales historically) declined to 18.5% from 29.8% a year
ago.
During the first half of 2011, Fastenal opened 75 stores
compared with 45 stores in the same period of 2010. The company had
2,565 stores as of June 30, 2011.
During each of the first six months of 2011 and 2010, the company
closed seven stores. The company intends to open 80 to 95 stores
during the second half of 2010 (which is equivalent to an
annualized rate of 6.8% to 8.0%).
Fastenal had cash and cash equivalents of $89.4 million as on June
30, 2011 compared with $143.7
million as on December 31,
2010.
In the first half of the year, the company had a cash flow of
$101.3 million from operating
activities, a decline from $119.6
million in the prior-year period. Despite an improvement in
profit, cash flow declined primarily due to increases in trade
accounts receivable and inventories. Meanwhile, capital
expenditures (net) increased to $54.7
million from $30.1 million in
the year-ago period.
Fastenal has a widespread customer base. The company's large
number of customers belong to varied markets, which protects its
market position in tough economies. Further, the company has
employed a hub and spoke model along with the opening of new stores
and service centers to ensure efficient customer service in all
aspects. Under the Pathway to Profit growth strategy, the company
aims to push sales of its average store to 100,000-$110,000 per month by 2013.
These factors have led the company to maintain a Zacks #2 Rank
on its stock, which translated to a short-term (1–3 months) rating
of Buy.
Williams Partners Wins Permit
Williams Partners L.P. (NYSE: WPZ) got a nod from the
Federal Energy Regulatory Commission (FERC) for the expansion of
its Transco natural gas pipeline to serve evolving markets in the
Mid-Atlantic region.
The Mid-Atlantic Connector expansion project is slated to be
operational by November next year, with 142,000 dekatherms (1.38
billion cubic feet) of additional transportation capacity to serve
the regional market.
The expansion, which will cost about $55
million, involves approximately three miles of new pipeline
and the upgrade of compressor facilities in Virginia. The project was planned with the
main aim of connecting the Transco pipeline with East Tennessee
Natural Gas in Rockingham County
for power generation and local distribution. Upon completion, it
will meet the growing demand for clean energy in this fast
developing region.
The 10,000-mile Transco currently has a capacity of about 9.6
million dekatherms (9.3 billion cubic feet) per day and serves the
Southeast, Mid-Atlantic and Northeast markets.
Williams Partners is an energy master limited partnership
engaged in the gathering, transportation, treating, and processing
of natural gas as well as fractionation and storage of natural gas
liquids. We believe William Partners is well positioned for future
growth, owing to its geographically diverse assets, a sizable
project backlog as well as its sound distribution history.
The partnership's gas pipeline and midstream businesses continue
to progress on a number of ongoing organic expansion projects,
along with major growth initiatives in the Gulf of Mexico over the next two years. The
general partner is owned and managed by Williams Companies
Inc. (NYSE: WMB).
Williams Partners, which retains a Zacks #4 Rank (short-term
Sell rating), competes with Enterprise Products Partners LP
(NYSE: EPD) and Kinder Morgan Energy Partners, L.P. (NYSE:
KMP).
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