Fastenal Stock Drops as 'Soft Manufacturing Environment' Hits Q4 Results

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]