Core Insights - Fastenal reported $2.08 billion in revenue for the quarter ended June 2025, marking an 8.6% year-over-year increase and a surprise of +0.88% over the Zacks Consensus Estimate of $2.06 billion [1] - The earnings per share (EPS) for the same period was $0.29, compared to $0.25 a year ago, resulting in an EPS surprise of +3.57% against the consensus estimate of $0.28 [1] Financial Performance Metrics - Fastenal's shares have returned +2.6% over the past month, while the Zacks S&P 500 composite has changed by +4% [3] - The company had 64 business days in the quarter, matching the average estimate by six analysts [4] - Daily sales were reported at $32.50, exceeding the five-analyst average estimate of $31.80 [4] - The number of branch locations was 1,596, slightly above the two-analyst average estimate of 1,595 [4] - Weighted FASTBin/FASTVend signings (MEUs) were 6,458, below the two-analyst average estimate of 7,615 [4] - Weighted FASTBin/FASTVend installations (MEUs; end of period) totaled 132,174, also below the two-analyst average estimate of 133,889 [4]

Financial Performance - Second quarter net sales increased by 8.6%, primarily driven by improved customer contract signings over the past six quarters[6] - Earnings per share (EPS) for the second quarter improved 12.7% to $0.29, compared to $0.25 in the second quarter of the previous year[12] - The operating margin improved to 21.0% in the second quarter, up from 20.2% in the second quarter of the previous year[12] - Gross profit margin increased to 45.3% from 45.1% in the second quarter of the previous year, reflecting favorable price/cost dynamics and improved fastener sales margins[28] - Operating cash flow (OCF) for the second quarter was $278.6 million, representing 84.4% of net income[31] Customer Site Performance - The number of customer sites with sales over $10,000 per month grew by 6.7%, led by Onsite-like locations which increased by 12.4%[6] - Sites with sales over $10,000 per month accounted for 81.4% of net sales in the second quarter, up from 79.2% in the second quarter of the previous year[6] - Total manufacturing customer sites were 43,138 with sales of $1,575.4 million, while total non-manufacturing customer sites were 58,302 with sales of $504.9 million[7] Digital Footprint and Technology - Daily sales through eBusiness rose 13.5% in the second quarter[18] - Activity through the company's FMI (Fastenal Managed Inventory) technology platform represented 44.1% of sales in the second quarter, compared to 41.8% and 39.8% in the second quarter of the previous year and the year before, respectively[17] - Sales through the digital footprint (FMI technology plus non-FMI-related eBusiness) accounted for 61.0% of total sales in the second quarter, versus 59.4% and 55.3% in the second quarter of the previous year and the year before, respectively[18]

Group 1 - Fastenal reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.25 per share a year ago, representing an earnings surprise of +3.57% [1] - The company posted revenues of $2.08 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.88%, and an increase from $1.92 billion year-over-year [2] - Fastenal shares have increased approximately 20.3% since the beginning of the year, outperforming the S&P 500's gain of 6.4% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $2.09 billion, and for the current fiscal year, it is $1.09 on revenues of $8.12 billion [7] - The Zacks Industry Rank indicates that the Industrial Services sector is in the top 13% of over 250 Zacks industries, suggesting strong potential for stock performance [8] Group 3 - Fastenal has surpassed consensus EPS estimates only once in the last four quarters, while it has topped consensus revenue estimates two times in the same period [2][6] - The estimate revisions trend for Fastenal was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

EXHIBIT 99.1 Net sales increased $164.1, or 8.6%, in the second quarter of 2025 when compared to the second quarter of 2024. Both periods had the same number of selling days. The results largely reflect the contribution from improved customer contract signings over the past six quarters. Market conditions remained sluggish, providing minimal contribution. Changes in foreign exchange rates positively affected sales in the second quarter of 2025 by approximately 10 basis points and negatively affected sales i ...

Core Viewpoint - Fastenal Company (FAST) is expected to report its second-quarter 2025 results on July 14, with earnings per share estimated at 28 cents, reflecting a 12% year-over-year growth, and net sales projected at $2.06 billion, indicating a 7.6% increase from the previous year [1][2]. Group 1: Sales Performance - Fastenal's net sales in the last reported quarter exceeded the Zacks Consensus Estimate by 0.5%, with a year-over-year increase of 3.4% [1]. - The average daily sales (ADS) for May 2025 grew by 9.3% to $32.7 million, showing a 4.1% increase from April 2025 [3]. - In May 2025, daily sales in Heavy Manufacturing and Other Manufacturing increased by 8.6% and 12.8%, respectively, while Non-residential Construction grew by 3.3% [4]. Group 2: Growth Drivers - The anticipated growth in sales is attributed to improved customer contract signing trends, enhanced digital presence, and increased investments in sales resources [2]. - A balanced mix of onsite and offsite services, along with market share gains across various product categories, is expected to contribute to the sales uptick [2]. - Daily sales growth for contract and non-contract customers was 12% and 4%, respectively, with eBusiness sales increasing by 14% in May [4]. Group 3: Margin and Cost Management - Fastenal's bottom line is projected to improve due to active cost control measures aimed at countering cost inflation, including warehouse automation and increased delivery efficiency [6]. - Despite facing elevated occupancy and employee-related expenses, the company is expected to achieve a 12% growth in EPS driven by sales growth and margin expansion initiatives [7]. - Total operating expenses as a percentage of net sales are expected to contract by 60 basis points to 24.3% for the upcoming quarter [8]. Group 4: Earnings Prediction - The Zacks model predicts an earnings beat for Fastenal, supported by a positive Earnings ESP of +3.05% and a Zacks Rank of 3 (Hold) [9][10].

Group 1 - Fastenal is predicted to post quarterly earnings of $0.28 per share, reflecting a 12% increase year-over-year, with revenues forecasted at $2.06 billion, representing a 7.6% increase [1] - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 1.2%, indicating a reassessment of initial projections by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Group 2 - Analysts expect 'Business days' to remain at 64 days, unchanged from the previous year [4] - The consensus estimate for 'Daily sales' is $32.12, up from $29.90 a year ago, while 'Weighted FASTBin/FASTVend signings (MEUs)' are expected to reach 7,615, compared to 7,188 in the same quarter last year [5] - The forecast for 'Weighted FASTBin/FASTVend installations (MEUs; end of period)' is 133,889, an increase from 119,306 reported in the same quarter last year [6] Group 3 - Fastenal shares have changed by +0.3% in the past month, contrasting with the Zacks S&P 500 composite's +3.9% movement, indicating that FAST is expected to closely follow overall market performance [6]

Core Viewpoint - Fastenal is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on July 14, with expectations that better-than-expected results could drive the stock price higher, while disappointing results may lead to a decline [2]. - Fastenal is projected to post quarterly earnings of $0.28 per share, reflecting a year-over-year increase of +12%, and revenues are expected to reach $2.06 billion, up 7.5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. - The Most Accurate Estimate for Fastenal is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.05%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Fastenal currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - Fastenal has not been able to exceed consensus EPS estimates in any of the last four quarters, with the last reported quarter matching expectations at $0.26 per share, resulting in no surprise [13][14]. Conclusion - Fastenal is viewed as a compelling candidate for an earnings beat, but investors are advised to consider other factors that may influence stock performance beyond just earnings results [15][17].

Group 1 - Fastenal Company is set to release its second-quarter earnings results on July 14, with analysts expecting earnings of 28 cents per share, an increase from 25 cents per share in the same period last year [1] - The projected quarterly revenue for Fastenal is $2.07 billion, compared to $1.92 billion a year earlier [1] - On April 23, Fastenal announced a two-for-one stock split [1] Group 2 - Fastenal shares experienced a decline of 0.4%, closing at $42.68 [2] - Benzinga provides access to the latest analyst ratings for Fastenal, allowing readers to sort by various criteria [2] Group 3 - Morgan Stanley analyst Chris Snyder maintained an Equal-Weight rating and raised the price target from $38 to $40 [4] - Stephens & Co. analyst Tommy Moll maintained an Equal-Weight rating and increased the price target from $75 to $80 [4] - Baird analyst David Manthey maintained a Neutral rating and raised the price target from $80 to $86 [4] - William Blair analyst Ryan Merkel upgraded the stock from Market Perform to Outperform [4] - Stifel analyst Brian Butler maintained a Hold rating and cut the price target from $86 to $82 [4]

Core Viewpoint - Fastenal, O'Reilly Automotive, and Interactive Brokers have all announced stock splits this year, prompting a comparison of their financial metrics, growth prospects, and valuations to determine the best investment choice among them [2][14]. Financials - O'Reilly Automotive generated revenue of $16.87 billion over the last 12 months, significantly higher than Fastenal's $7.61 billion and Interactive Brokers' $5.4 billion [4]. - In terms of net profit margin, Fastenal leads slightly with 15.1%, followed by Interactive Brokers at 14.7% and O'Reilly at 14.1% [5]. - Interactive Brokers has the strongest balance sheet, with a cash position of nearly $89.7 billion compared to its debt of $17.15 billion, while both Fastenal and O'Reilly have larger debt loads than their cash reserves [6]. Growth - Interactive Brokers experienced a revenue increase of 18.6% year over year in Q1 2025, with earnings rising by 21.7% [7]. - Fastenal's net sales grew by 3.4% year over year, with earnings up only 0.3%, while O'Reilly reported a revenue growth of 4% but a decline in earnings by 1.6% [8]. - Analysts project O'Reilly to deliver the highest earnings growth next year at 12.5%, compared to Fastenal's 9.8% and Interactive Brokers' 7.3% [9]. Valuation - Interactive Brokers has the lowest trailing 12-month price-to-earnings ratio and forward P/E multiple [10]. - O'Reilly has a lower price-to-earnings-to-growth (PEG) ratio than Fastenal, indicating a more attractive valuation based on future earnings growth projections [11]. Dividends - Fastenal is the dividend winner with a forward dividend yield of 2.13% and has increased its dividend for 27 consecutive years [12]. - Interactive Brokers has a forward dividend yield of 0.63% and has only increased its dividend for two years, while O'Reilly does not currently offer a dividend [12]. Best Stock-Split Stock - The best choice among these stocks depends on the investor's style; Fastenal is recommended for income investors, while O'Reilly is viewed as the most attractively valued for growth investors [13][14].

Core Viewpoint - Fastenal Company is a leading wholesale distributor of industrial and construction supplies, playing a critical role in the economy and demonstrating strong stock performance, nearly doubling investors' money over the past five years [2][12]. Group 1: Stock Performance and Market Position - Fastenal's stock split at the end of May aimed to enhance share accessibility and liquidity, attracting a broader base of investors, particularly retail investors [2][3]. - Following the stock split, Fastenal's stock price gained about 5% as it adjusted to find a new equilibrium [3]. - The company has a current stock price of $42.86, with a 12-month price target of $40.40, indicating a potential downside of 5.74% [13]. Group 2: Operational Strength and Growth Strategy - Fastenal's operational excellence is driven by its direct sales model and extensive distribution network, including the "Onsite" location model, which integrates deeply with customer operations [4][5]. - The company plans to add between 375 and 400 new Onsite locations in 2025, expanding its existing base of over 1,950 [6]. - Fastenal's product portfolio is diversifying, with "Safety and Other Industrial Products" seeing a 3.5% year-over-year increase in daily sales, outpacing traditional fasteners [7]. Group 3: Financial Health and Shareholder Commitment - Fastenal reported Q1 2025 net sales of $1.96 billion, a 3.4% increase year-over-year, with May 2025 daily sales showing a 2.5% rise [7]. - The company maintains a conservative capital structure with a debt-to-equity ratio of 0.03 and strong liquidity ratios, indicating a solid capacity to meet short-term obligations [8]. - Fastenal has a 26-year track record of increasing dividends, with an annual dividend of $0.88 per share, reflecting financial stability and disciplined capital management [10][11]. Group 4: Future Outlook - Fastenal's strong fundamentals, including operational efficiencies and disciplined capital allocation, support its potential for sustained growth [14]. - The company plans to invest between $180 million and $200 million in capital expenditures for 2025, primarily for expanding Onsite locations and deploying FAST Solutions [11].