Fastenal first to report
Fastenal Co. is generally the first company in Minnesota to announce results at the start of a new earnings season. The nuts-and-bolts manufacturer reported third-quarter results Wednesday with earnings per share of 40 cents, which missed analysts' consensus by 1 cent.
The miss and pressure on the company's gross margins pushed shares down 6.3 percent Wednesday. But Wunderlich Securities analyst Brent Rakers maintains his "buy" rating on the company. He wrote: "We believe sales growth acceleration in upcoming months will lead to another more favorable turn in stock price performance."
Target lays off 150 in Minneapolis
On Wednesday, Target announced that it was laying off 150, or approximately 1 percent, of its corporate employees in Minneapolis. The move comes as many retailers, including Target, have lowered financial expectations for the rest of the year, including the holiday selling season. It was a rare layoff announcement by Target and an indication of the economic uncertainty that is spreading among retailers.
Stan Pohmer, a Twin Cities retail consultant, told the Star Tribune, "It's a general retail problem, and it's very broad."
Patrick Kennedy
