Financial Performance - Revenue for the quarter ended December 2024 was $1.82 billion, up 3.8% year-over-year [1] - EPS remained flat at $0.46 compared to the same period last year [1] - Revenue missed the Zacks Consensus Estimate of $1.84 billion by -1.08% [1] - EPS missed the consensus estimate of $0.48 by -4.17% [1] Stock Performance - Shares of Fastenal returned +1% over the past month [3] - The Zacks S&P 500 composite saw a -2.1% change during the same period [3] - The stock currently has a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Key Operational Metrics - Business days: 63 Days, matching the six-analyst average estimate [4] - Daily sales: $29, slightly below the four-analyst average estimate of $29.37 [4] - Number of in-market locations: 3,628, slightly above the three-analyst average estimate of 3,620 [4] - Weighted FASTBin/FASTVend installations: 126,957, exceeding the two-analyst average estimate of 125,874 [4] - Number of active Onsite locations: 2,031, slightly above the two-analyst average estimate of 2,023 [4] - Number of branch locations: 1,597, slightly below the two-analyst average estimate of 1,598 [4] - Weighted FASTBin/FASTVend signings: 6,790, exceeding the two-analyst average estimate of 6,407 [4]

Earnings Performance - Fastenal reported Q4 net income of $262.1 million, or $0.46 per share, on $1.82 billion in sales, missing analysts' consensus estimates [2] - Sales increased 3.7% YoY, but net daily sales rose only 2.1% after adjusting for an extra selling day compared to 2023 [2][4] - Profit declined 1.6% YoY [2][4] Market Reaction - Fastenal shares dropped nearly 5% in premarket trading following the earnings miss [4] - Despite the drop, shares were up about 18% over the past 12 months through Thursday's close [4] Sales Challenges - Sales growth was impacted by a "soft manufacturing environment" throughout much of 2024 [3] - Unusually sharp production cuts by customers in late December due to holiday factory closures negatively affected sales [3] - Foreign exchange rates had a negative impact on sales compared to a positive impact in the prior year [3]

Earnings Performance - Fastenal reported quarterly earnings of $0 46 per share, missing the Zacks Consensus Estimate of $0 48 per share, representing a -4 17% earnings surprise [1] - The company posted revenues of $1 82 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1 08% [2] - Over the last four quarters, Fastenal has not surpassed consensus EPS or revenue estimates [2] Stock Performance and Market Comparison - Fastenal shares have gained about 4% since the beginning of the year, outperforming the S&P 500's 1% gain [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is $0 53 on $1 97 billion in revenues, and $2 19 on $8 09 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Fastenal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected market-aligned performance [6] Industry Context - Fastenal belongs to the Zacks Building Products - Retail industry, which is currently in the bottom 24% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Peer Comparison - Yum Brands, another company in the Zacks Retail-Wholesale sector, is expected to report quarterly earnings of $1 59 per share, a 26 2% year-over-year increase, with revenues expected to be $2 32 billion, up 14 1% from the year-ago quarter [9][10] - The consensus EPS estimate for Yum Brands has been revised 0 5% lower over the last 30 days [9]

Sales Performance - Net sales increased by 2.7% to $7,546.0 million in 2024 compared to $7,346.7 million in 2023, with a 3.7% increase in the fourth quarter to $1,824.5 million[3] - Daily sales grew by 2.1% in Q4 2024 to $29.0 million, driven by growth at Onsite locations and larger customers[4][5] - Safety supplies sales grew by 4.8% in Q4 2024, contributing 23.0% of total sales, while fastener sales contracted by 1.4%[6] - National accounts sales grew by 4.2% in Q4 2024, representing 64.2% of total sales, compared to non-national accounts which declined by 1.0%[6] - FASTBin/FASTVend sales increased by 12.6% in Q4 2024 to $584.8 million, contributing 31.6% of total sales[8] - eBusiness sales grew by 27.6% in Q4 2024, representing 30.9% of total sales, with eProcurement growing 37.6% and eCommerce growing 2.0%[9] - The Digital Footprint represented 62.2% of sales in Q4 2024, up from 58.1% in Q4 2023, with expectations to reach 66% to 68% of sales volume in 2025[11] - Net sales for the year ended December 31, 2024, increased to $7,546.0 million from $7,346.7 million in 2023, representing a growth of 2.7%[42] Operational Metrics - The company signed 6,790 weighted FASTBin and FASTVend devices in Q4 2024, totaling 27,984 signings for the year, meeting the 2024 goal[10] - Onsite locations increased by 11.5% to 2,031 active sites by December 31, 2024, with 358 new signings in 2024[10] - Number of active Onsite locations increased by 11.5% to 2,031 in 2024, contributing to a 6.1% growth in total in-market locations[33] Financial Performance - Gross profit as a percentage of net sales decreased to 44.8% in Q4 2024 from 45.5% in Q4 2023, impacted by unfavorable customer and product mix, higher freight costs, and increased import duties[12] - SG&A expenses as a percentage of net sales increased to 25.9% in Q4 2024 from 25.3% in Q4 2023, driven by low sales volume and continued business investments[13] - Employee-related expenses, representing 70%-75% of total SG&A, increased by 3.1% in Q4 2024 due to higher average FTE and wages, partially offset by lower bonus payments[14] - Operating income as a percentage of net sales decreased to 18.9% in Q4 2024 from 20.1% in Q4 2023[17] - Net income in Q4 2024 was $262.1, a 1.6% decrease compared to Q4 2023, with diluted net income per share remaining flat at $0.46[20] - Gross profit for the year ended December 31, 2024, was $3,401.9 million, up from $3,354.5 million in 2023, reflecting a 1.4% increase[42] - Net income for the year ended December 31, 2024, was $1,150.6 million, slightly down from $1,155.0 million in 2023[42] - Basic net income per share for the year ended December 31, 2024, was $2.01, slightly down from $2.02 in 2023[42] Cash Flow and Investments - Net cash provided by operating activities in Q4 2024 was $282.8, a 20.1% decrease from Q4 2023, primarily due to increased inventory investment[21] - Inventories increased by 8.0% to $1,645.0 in 2024, driven by sales growth, stock additions for in-market locations, and supplier year-end opportunities[25] - Investment in property and equipment in 2024 was $214.1, below the anticipated range of $235.0-$255.0, due to lower demand for picking modules and FMI bins[27] - Cash and cash equivalents increased to $255.8 million at the end of 2024 from $221.3 million at the end of 2023, a 15.6% increase[40] - Net cash provided by operating activities for the year ended December 31, 2024, was $1,173.3 million, down from $1,432.7 million in 2023[45] - Purchases of property and equipment increased to $226.5 million in 2024 from $172.8 million in 2023, a 31.1% rise[45] - Cash dividends paid in 2024 were $893.3 million, down from $1,016.8 million in 2023, a 12.1% decrease[45] Debt and Capital Structure - Total debt decreased to $200.0 at the end of 2024, representing 5.2% of total capital, compared to $260.0 (7.2% of total capital) at the end of 2023[31] - Long-term debt decreased to $125.0 million in 2024 from $200.0 million in 2023, a 37.5% reduction[40] - Total assets grew to $4,698.0 million in 2024 from $4,462.9 million in 2023, a 5.3% increase[40] Foreign Exchange Impact - Foreign exchange rates negatively impacted Q4 2024 sales by approximately 20 basis points, compared to a positive impact of 10 basis points in Q4 2023[4]

Earnings Report and Estimates - Fastenal Company (FAST) is scheduled to report fourth-quarter 2024 results on Jan 17 [1] - The Zacks Consensus Estimate for earnings per share is 48 cents, indicating 4.4% growth from the year-ago level [3] - The consensus mark for revenues is $1.85 billion, a 5% increase from the year-ago figure of $1.76 billion [3] - The company's model predicts overall daily sales of $29.4 million for Q4, a 3.4% increase from a year ago [7] Historical Performance and Trends - In the last reported quarter, Fastenal's earnings met the Zacks Consensus Estimate while net sales missed by 0.3% [2] - Year-over-year, the top line rose 3.5% while the bottom line remained flat [2] - Fastenal's earnings topped the consensus mark in one of the last four quarters, met in two, and missed in one, with an average of 0.1% [2] - November's average daily sales (ADS) grew 3.4% to $29.5 million, improving from 2.8% growth in October 2024 [5] Sales and Market Performance - Manufacturing sales improved 11.2% (Heavy Manufacturing and Other Manufacturing) and 8% year-over-year in November and October 2024, respectively [6] - Non-residential construction declined 1.7% in November and 4.9% in October 2024 [6] - Fastener sales were up 0.1% in November and down 2% in October 2024 [6] - Safety sales increased 5.5% in November compared with 5.8% growth in October 2024 [6] - Other categories improved 5.2% in November and 5.1% in October 2024 [6] Key Growth Drivers - Improving manufacturing markets are likely to contribute to the company's top line [4] - Factors favoring sales growth include a significant number of large customers, a strong digital strategy, a balanced mix of onsite and offsite services, and market share gains across various product categories [4] - A change in national account strategy is expected to contribute positively [4] Margins and Expenses - The gross margin for Q4 is expected to be 44.7%, down from 45.5% in the year-ago figure [8] - Total operating expenses are expected to increase 1.8% to $453.7 million in Q4 from a year ago [8] - Headwinds include negative impacts from customer and product mix, higher import duties (particularly in Mexico), reduced supplier rebates, lower product purchases, and rising employee and occupancy-related expenses [7] Earnings ESP and Zacks Rank - Fastenal has an Earnings ESP of 0.00% and carries a Zacks Rank 3 [10] - The combination of a positive Earnings ESP and a Zacks Rank 1, 2, or 3 increases the odds of an earnings beat, which is not the case here [9] Comparison with Other Companies - Aspen Aerogels (ASPN) has an Earnings ESP of +53.12% and a Zacks Rank 3, with earnings expected to grow 1,000% year-over-year [11][12] - Advance Auto Parts (AAP) has an Earnings ESP of +13.32% and a Zacks Rank 3, with earnings expected to decline 145.8% year-over-year [12] - Deckers Outdoor Corporation (DECK) has an Earnings ESP of +12.67% and a Zacks Rank 1, with earnings expected to decrease 1.2% year-over-year [13]

Earnings and Revenue Projections - Fastenal Company is set to release its fourth-quarter financial results on January 17, 2025, before the market opens [1] - Analysts expect the company to report quarterly earnings of 48 cents per share, up from 46 cents per share in the same period last year [1] - The company projects quarterly revenue of $1.84 billion, compared to $1.76 billion a year earlier [1] - Fastenal previously reported better-than-expected third-quarter financial results on October 11 [1] Stock Performance and Analyst Ratings - Fastenal shares increased by 0.7% to close at $74.27 on Wednesday [2] - Jefferies analyst Stephen Volkmann maintained a Hold rating and raised the price target from $74 to $85 on December 6, 2024, with an accuracy rate of 71% [3] - UBS analyst Amit Mehrotra assumed a Neutral rating and raised the price target from $71 to $88 on November 13, 2024, with an accuracy rate of 75% [3] - Morgan Stanley analyst Chris Snyder maintained an Equal-Weight rating and raised the price target from $72 to $76 on October 14, 2024, with an accuracy rate of 71% [3] - Stephens & Co analyst Tommy Moll maintained an Equal-Weight rating and increased the price target from $56 to $75 on October 14, 2024, with an accuracy rate of 79% [3] - Baird analyst David Manthey maintained a Neutral rating and raised the price target from $67 to $80 on October 14, 2024, with an accuracy rate of 77% [3]

Earnings and Revenue Projections - Wall Street analysts expect Fastenal to post quarterly earnings of $0 48 per share, indicating a year-over-year increase of 4 4% [1] - Revenues are projected to be $1 85 billion, up 5% from the year-ago quarter [1] - The consensus EPS estimate has remained unchanged over the last 30 days, reflecting analysts' reassessment of initial estimates [1] Key Metrics Analysis - The consensus estimate for 'Business days' is 63 00 Days, compared to 62 Days in the same quarter last year [4] - Analysts predict 'Daily sales' to average $29 37, up from $28 40 in the year-ago quarter [4] - The 'Number of in-market locations' is expected to reach 3,620, compared to 3,419 in the same quarter last year [4] - 'Weighted FASTBin/FASTVend signings' are projected at 6,407, up from 5,462 in the year-ago quarter [5] - The 'Number of branch locations' is estimated at 1,598, slightly up from 1,597 in the same quarter last year [5] - Analysts expect 'Number of active Onsite locations' to reach 2,023, compared to 1,822 in the previous year [6] - 'Weighted FASTBin/FASTVend installations' are projected at 125,874, up from 113,138 in the same quarter last year [6] Stock Performance and Market Comparison - Fastenal shares have experienced a -6 7% change in the past month, underperforming the -3 5% move of the Zacks S&P 500 composite [7] - With a Zacks Rank 4 (Sell), Fastenal is expected to underperform the overall market in the near future [7]

Fastenal Company FAST will release its fourth-quarter financial results, before the opening bell, on Friday, Jan. 17, 2025.Analysts expect the Winona, Minnesota-based company to report quarterly earnings at 48 cents per share, up from 46 cents per share in the year-ago period. Fastenal projects quarterly revenue of $1.84 billion, compared to $1.76 billion a year earlier, according to data from Benzinga Pro.On Dec. 11, Stifel analyst Brian Butler downgraded Fastenal from Buy to Hold and maintained the price ...

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For Immediate ReleaseChicago, IL – November 15, 2024 – Today, Zacks Equity Research The Home Depot Inc. (HD) , Lowe's Companies (LOW) , Fastenal Co. (FAST) , Beacon Roofing Supply (BECN) and Tecnoglass (TGLS) .Industry: Retail Building ProductsLink: https://www.zacks.com/commentary/2370313/5-retail-building-products-stocks-set-to-thrive-amid-industry-recoveryParticipants in the Zacks Building Products – Retail industry are poised to benefit from technological initiatives to enhance the e-commerce experience ...