Fastenal Company (NASDAQ:FAST) Q3 2024 Earnings Call Transcript October 11, 2024 10:00 AM ET Company Participants Taylor Ranta - Accounting Manager Dan Florness - CEO Holden Lewis - CFO Conference Call Participants Ryan Merkel - William Blair Ken Newman - KeyBanc Capital Markets Tommy Moll - Stephens Stephen Volkmann - Jefferies Nigel Coe - Wolfe Research Chris Snyder - Morgan Stanley Operator Hello, and welcome to the Fastenal 2024 Q3 Earnings Results Conference Call. At this time, all participants are in ...

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].

THIRD 2024 QUARTER INVESTOR TELECONFERENCE OCTOBER 11, 2024 1 SAFE HARBOR STATEMENT | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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]

EXHIBIT 99.1 Fastenal Company Reports 2024 Third Quarter Earnings WINONA, Minn., October 11, 2024 (BUSINESS WIRE) -- Fastenal Company (Nasdaq:FAST) (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us'), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter ended September 30, 2024. Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions. Throughou ...

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 ...

Fastenal Company (NASDAQ: FAST ), the industrial and construction supplies distributor, has reported a slowdown in growth as the US manufacturing purchasing has been pressured by a weaker economy. The soonto-be-reported Q3 results look to slightly revitalize year-on-year growth although I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around ide ...