Fastenal Company (FAST) recently released its October sales report, wherein average daily sales or ADS grew 2.8% year over year to $30.1 million, moderating sequentially but improving annually. In the prior month, daily sales registered 3.2% growth, and in the year-ago period, the same registered a 1.9% increase.The ADS is lower than the historical October daily sales growth average of down 2.1% month over month between 2018 and 2023 (excluding 2020).Net sales in October 2024 were $692.8 million, reflecting ...

Have you looked into how Fastenal (FAST) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of industrial and construction fasteners, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth. In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. ...

Core Insights - Fastenal shares experienced a nearly 10% increase, reaching their highest level since April, following the company's report of higher revenue despite disruptions from Hurricane Helene [1][5] - The company reported third-quarter earnings per share (EPS) of 52 cents on revenue of $1.91 billion, which is a 3.5% increase and aligns with analyst forecasts [2][5] - The impact of Hurricane Helene resulted in a reduction of daily sales by 5 to 25 basis points in the Southeast and Atlantic Coastal regions [3] Revenue Drivers - Revenue growth was attributed to an increase in larger customers and the benefits from onsite locations established in the past two years [5] - Sales of safety supplies rose by 6.8%, while other product lines contributed an additional 3.7%, which helped to offset a 4.0% decline in fastener sales [5] Management Commentary - The CEO noted that the quarter finished stronger than it started, particularly in light of the hurricane's impact on the last few days of the month [4]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 3.5%, with earnings per share of $0.52, up 1% year-over-year [8][22] - Daily sales rate grew by 1.9%, with September showing a stronger performance despite hurricane impacts [8][17] - Operating margin decreased to 20.3%, down 70 basis points year-over-year, while gross margin was 44.9%, down 100 basis points [20][22] Business Line Data and Key Metrics Changes - Onsite signings reached 93 in the quarter, with active sites up 12% from the end of Q3 2023 [12] - FMI Technology signed 7,281 weighted devices, averaging 114 per day, indicating strong growth in this segment [14] - E-commerce grew by 25.5%, with eProcurement growing over 30%, while web-centric eCommerce saw single-digit growth [16] Market Data and Key Metrics Changes - Reseller end market sales declined by 11.3% in Q3, indicating channel destocking [18] - The Purchasing Manager's Index (PMI) has been below 50 for 22 of the last 23 months, indicating manufacturing contraction [17] - Key markets such as agriculture and consumer durables were noted as weak, while oil and gas remained stable [32] Company Strategy and Development Direction - The company is focusing on customer acquisition and improving operational efficiency, particularly through Onsite and FMI signings [12][42] - There is a strategic emphasis on balancing cost management with growth investments, particularly in IT and business analytics [21][22] - The company aims to enhance its digital solutions and e-commerce capabilities to better align with customer needs [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential improvements in market conditions moving into 2025, despite current sluggish demand [19][30] - The company is navigating a shallow contraction in the market but expects strong year-to-date signings to benefit future sales trends [19][22] - Management highlighted the importance of maintaining flexibility and strategic inventory management to improve supply chain efficiency [11][23] Other Important Information - The company added approximately $25 million in new inventory in Q3 2024, with plans for an additional $5 million to $10 million in Q4 [23] - Net capital spending for Q3 2024 was $55.8 million, with full-year expectations ranging from $235 million to $255 million [24] Q&A Session Summary Question: Did September's performance benefit from macro factors or market share gains? - Management indicated that the improvement was largely due to new customer acquisitions rather than macroeconomic factors [25][35] Question: What is the outlook for gross margin in Q4? - Management expects a slight decline in gross margin but believes it will perform better than typical seasonal trends [26][27] Question: What is the minimum sales growth needed to return to historical margin levels? - Management stated that revenue growth above mid-single digits is necessary to leverage margins effectively [29][30] Question: How is the company addressing branch growth and market visibility? - Management anticipates branch growth in 2025, with improved alignment in sales leadership and customer service roles [44][45]

Core Viewpoint - Fastenal Company reported mixed third-quarter 2024 results, with earnings meeting expectations while net sales fell short of consensus estimates. Year-over-year, net sales increased, but earnings remained flat [1][4]. Financial Performance - Earnings per share (EPS) was 52 cents, matching the Zacks Consensus Estimate and unchanged from the previous year [4]. - Net sales reached $1.91 billion, slightly missing the consensus by 0.3% but showing a 3.5% increase year-over-year [4]. - Daily sales averaged $29.8 million, reflecting a 1.9% year-over-year increase [5]. Sales Breakdown - Daily sales of Fasteners, which accounted for approximately 30.2% of net sales, declined by 4% year-over-year [6]. - Sales of Safety Supplies (22.5% of net sales) grew by 6.8% year-over-year, while Other Product Lines (47.3%) increased by 3.7% [6]. - Daily sales in Heavy Manufacturing (43.3% of net sales) rose by 1.8% year-over-year, and Other Manufacturing (32.2%) grew by 4% [7]. Market Trends - Daily sales in Non-Residential Construction and Reseller segments declined by 3.6% and 11.3%, respectively, while Other End-Markets saw a 5.6% increase [8]. - Daily sales to National Account customers (63.6% of total net sales) increased by 5.6% year-over-year, while sales to Non-National Account customers (36.4%) fell by 4.1% [9]. Growth Drivers - Fastenal opened 93 new Onsite locations in the third quarter, bringing the total to 1,986 active sites, an 11.7% increase from the previous year [10]. - Daily sales through Onsite locations increased at a low-single-digit rate year-over-year, supported by new locations activated in 2023 and 2024 [11]. Margin Analysis - Gross margin was 44.9%, down 100 basis points year-over-year, while operating margin decreased to 20.3%, down 70 basis points [12]. - Selling, general, and administrative expenses as a percentage of net sales decreased to 24.6% from 25% in the prior year [12]. Financial Position - As of September 30, 2024, cash and cash equivalents were $292.2 million, up from $221.3 million at the end of 2023. Long-term debt decreased to $125 million from $200 million [13]. - The company returned $223.4 million to shareholders in dividends during the quarter, with net cash from operating activities totaling $890.5 million, down from $1.08 billion in the previous year [13].

Fastenal (FAST) reported $1.91 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 3.5%. EPS of $0.52 for the same period compares to $0.52 a year ago. The reported revenue represents a surprise of -0.26% over the Zacks Consensus Estimate of $1.92 billion. With the consensus EPS estimate being $0.52, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Group 1: Earnings Performance - Fastenal reported quarterly earnings of $0.52 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $1.91 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.26% and showing a year-over-year increase from $1.85 billion [2] - Over the last four quarters, Fastenal has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2][1] Group 2: Stock Performance and Outlook - Fastenal shares have increased approximately 8.1% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $1.84 billion, and for the current fiscal year, it is $2.04 on revenues of $7.57 billion [7] Group 3: Industry Context - The Building Products - Retail industry, to which Fastenal belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Fastenal's stock performance [5]

The upcoming report from Fastenal (FAST) is expected to reveal quarterly earnings of $0.52 per share, indicating no change from the year-ago quarter compared to the year-ago period. Analysts forecast revenues of $1.92 billion, representing an increase of 3.8% year over year. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings ...

Fastenal Company (FAST) is scheduled to report third-quarter 2024 results on Oct. 11, before the opening bell. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. In the last reported quarter, Fastenal reported mixed results, with earnings meeting the Zacks Consensus Estimate and net sales missing the same by 0.3%. On a year-over-year basis, net sales rose 1.8% but the bottom line declined 2%. Fastenal's earnings topped the consensus mark in two of the last four quarters, met on one an ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Considering buying FAST stock? Here's what analysts think: Fastenal Co has a consensus price target of $64.21 based on the ratings of 14 analysts. The high is $85 issued by B of A Securities on October 7, 2024. The low is $42 issued by Morgan Stanley on January 6, 2023. The 3 most-recent analyst ratings were released by ...