Thursday, October 11, 2012

Two Strong Momentum: Sirius XM Radio Inc(NASDAQ:SIRI) & Fastenal Company(NASDAQ:FAST)

Wednesday Sirius XM Radio Inc(NASDAQ:SIRI) raised its guidance for a subscriber gain. The company raised gain of 1.8 million in 2012 from its previous gain forecast of 1.6 million.

Finishing the period with a record of 23.4 million it added nearly 446,000 subscribers in the quarter through September.

The additions represented the best third quarter since Sirius and XM merged in July 2008 said CEO Mel Karmazin. 87 percent of revenue for Sirius XM was generated from subscription in the first six months.
So far in 2012 the company added 1.5 million subscribers overall. Shares of SIRI rose 0.36% to $2.76 at mid day on Thursday and made another new high of $2.79. The stock has risen 6.50% in the past two trading sessions.

Shares of Fastenal Company(NASDAQ:FAST) rose $3.42 or 8.50 percent to $45.90 Thursday the company stated of a 13 percent rise in its third quarter net income. A double digit sales increase in all three months and addition of new stores lead boosted its growth. For the quarter Fastenal earned $109.3 million or 37 cents per share. Last year, in the same quarter the company earned $96.8 million, or 33 cents per share.

Revenue rose 10 percent to $802.6 million from $726.7 million. A FactSet poll states expected earnings of 37 cents per share on revenue of $804.8 million. Year-over-year daily sales growth rate exceeded 12 percent in all three months of the quarter for the company but was slightly holdback by the effects of unfavorable exchange rates.

With the rise in dollar commencing business outside U.S might hurt as income earned in foreign currencies shrinks when converted. Presently the company has 2650 stores at the quarter end.

In the prior period it had about 2,566 stores. Fastenal Company is engaged in selling industrial and construction supplies in a wholesale and retail fashion. It sells nuts, bolts and other fasteners.

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