Fastenal Co. posted a 17 percent rise in third-quarter net income on improved margins.

The Winona company, which specializes in industrial and construction power tools and equipment, reported net income of $72.9 million, or 49 cents a share, compared with $62.1 million, or 41 cents, a year ago. Results for the latest quarter included a $10 million charge related to a preliminary lawsuit settlement regarding overtime for general managers.

Revenue for Fastenal, which recently replaced Fannie Mae in the Standard & Poor's 500 index, climbed 17 percent to $625 million, as daily sales rose at least 10 percent in each month of the quarter for stores open more than two years.

Analysts polled by Thomson Reuters expected earnings of 51 cents a share on $624 million in revenue.

Gross margin rose to 52.9 percent from 51 percent despite high fuel costs.

Fastenal's stock had lost one-third of its value in the past month amid the market's recent swoon, but Monday it rose $3.25, or 8.7 percent, to close at $40.47.