Fastenal (FAST) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 11, 2024, might help the stock move higher if these key numbers are be ...

Investors in Fastenal Company (FAST) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 15, 2025 $90 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

Buy-and-hold dividend growth investors know something about the best dividend stocks to buy that less experienced yield-hunters don't: it pays to be patient when you're investing for income. Shares in companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with. That's partly because regular dividend increases lift the yield on an investor's original cost bas ...

Generally, when investing in stocks we look for companies with strong brand power, differentiation and significant barriers to entry. This is not the case with Fastenal Co. (FAST, Financial). As the company operates in the industrial supplies distribution sector, there is little differentiation and a low barrier to entry. The company makes up for this, however, by being very efficient in executing its business model, offering diversified solutions, inventory solutions and has a large distribution network, w ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ☐ Indic ...

The quarterly results reflect higher unit sales attributable to growth with larger customers and Onsite locations opened in the last two years. The uptrend was partially offset by lower product pricing showcasing lower fastener pricing, which is a by-product of lower transportation costs, as well as lower pricing in certain safety and other product categories. Also, foreign exchange rates negatively impacted the quarter's sales to some extent. Shares of the company gained 5.6% in the pre-market trading sess ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of approximately 2% in the second quarter of 2024, with EPS at $0.51, down 2% from $0.52 in the same period last year [86] - Gross margin decreased to 45.1%, down 40 basis points year-over-year, primarily due to product and customer mix [85] - SG&A expenses were 24.9% of sales, an increase from 24.6% a year ago, attributed to higher employee-related expenses and costs associated with customer expos [85] Business Line Data and Key Metrics Changes - The Fastener product line experienced a decline of 3%, with contractions in MRO and OEM products, while safety products grew by 7.1% due to strong growth in warehousing customers [83] - The installed base of weighted devices increased by 11% year-over-year, indicating market share growth [55] - The average order value decreased from $224 to $217, reflecting a drop in customer spending [79] Market Data and Key Metrics Changes - The company noted a sluggish business environment, with 19 out of the last 20 months showing sub-50 ISM readings, indicating a prolonged downturn in industrial production [48][51] - Customer acquisition efforts have shown improvement, with core accounts increasing by 7% in the first half of 2024 compared to a 4% decline in the same period last year [57] - E-business grew by 25%, driven by the e-procurement side, although overall e-commerce performance was described as only "okay" [60] Company Strategy and Development Direction - The company is focusing on enhancing customer acquisition and aligning sales efforts under new leadership to improve performance [74] - Investments in technology, particularly Fastenal Intelligence, are aimed at improving operational efficiency and customer service [69][70] - The company plans to increase net capital spending for 2024 to support automation and technology upgrades, reflecting a commitment to future growth [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing challenging macroeconomic environment but remains optimistic about the potential for growth in the second half of 2024 due to strong signings activity [63][99] - The leadership emphasized the importance of maintaining discipline in pricing and cost management in response to market conditions [19][84] - There is uncertainty regarding the timing of a market recovery, with management noting that customers are adjusting their cost structures in light of prolonged downturns [112] Other Important Information - The company is undergoing a significant reclassification of inventory, adding approximately 18,000 SKUs to distribution, which is expected to enhance service and gross margin [33] - Operating cash flow for the second quarter was $258 million, representing 88% of net income, indicating strong cash generation despite a soft demand environment [92] Q&A Session Summary Question: Can you provide context on pricing trends in the safety category? - Management acknowledged that while pricing in the Fastener category has been declining, they have managed costs effectively and are focusing on improving pricing discipline in the safety category [15][16] Question: How do you view the impact of warehousing customers on gross margin trends? - Management indicated that the impact from warehousing ramps was as planned in Q2 and should ease into Q3, with expectations for gross margin trends to stabilize [87][88] Question: What are the expectations for SG&A growth in the upcoming quarters? - Management noted that SG&A growth typically tracks revenue growth, and they are focused on maintaining tight spending in the current environment [117]

Business Performance - 2Q24 net sales increased by 1.8%[86], but EPS decreased by 2.0% to $0.51[86] - National Accounts' daily sales increased by 5.8% in 2Q24[36], while non-National Account daily sales decreased by 4.3%[36] - eBusiness daily sales rose 25.5% in 2Q24[69], with eProcurement and eCommerce up 30.9% and 11.6%, respectively[69] Financial Metrics - 2Q24 operating margin was 20.2%, down from 21.0% in 2Q23[97] - Gross margin declined to 45.1% from 45.5% in 2Q23[97] - SG&A costs were 24.9% of sales, up from 24.6% in 2Q23[97] - 2Q24 operating cash flow was $258.0 million, representing 88.1% of net income[13] - Balance sheet debt was 6.3% of total capital in 2Q24, compared to 9.4% in 2Q23[14] Growth Drivers - The installed base of weighted FMI devices reached 119,306, an increase of 11.4% from 2Q23[8] - Activity through the FMI technology platform accounted for 41.8% of sales in 2Q24, compared to 39.8% and 35.6% in 2Q23 and 2Q22, respectively[8] - Sales through the Digital Footprint were 59.4% of total sales in 2Q24, versus 55.3% and 47.9% in 2Q23 and 2Q22, respectively[33] Market Conditions - The U S Manufacturing PMI has been below 50 for 19 of the last 20 months[3] - U S PMI averaged 48.8 in 2Q24[35]

Core Viewpoint - Fastenal's earnings results indicate ongoing softness in the manufacturing and construction sectors, suggesting a potential slowdown in the broader industrial economy [1][6]. Company Performance - Fastenal's Q2 net sales growth was reported at 1.8%, which fell short of the estimated 2.1% increase, partly due to negative currency effects and a challenging product pricing environment [11]. - The operating margin decreased by 80 basis points year-over-year to 20.2%, primarily due to a 30 basis point increase in SG&A costs as a percentage of revenues [5][11]. - Earnings per share (EPS) for Q2 landed at $0.51, which was in line with expectations but a penny lower than the same period last year [5][11]. Market Sentiment - The broader analyst community maintains a neutral sentiment on Fastenal, with shares seen as fairly valued around $65 per share [2][6]. - Fastenal's stock has experienced a pullback since its Q1 results, aligning with the neutral stance on the shares [6]. Industry Context - The manufacturing environment remains challenging, with the ISM Manufacturing PMI reported at 48.5, indicating contraction [10]. - Daily sales growth has been declining for the past quarters, with Q2 growth landing at 1.8%, reflecting a continued tough operating environment [11]. Growth Initiatives - Fastenal reported 107 Onsite signings in Q2, building on 102 signings in Q1, indicating a positive trend in customer acquisition efforts [12].

Fastenal (FAST) reported $1.92 billion in revenue for the quarter ended June 2024, representing a year-overyear increase of 1.8%. EPS of $0.51 for the same period compares to $0.52 a year ago. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Here is how Fastenal performed in the ...