Fastenal Q1 Earnings Meet Expectations, Sales Top, Daily Sales Up Y/Y

Core Insights - Fastenal Company's first-quarter 2025 adjusted earnings met the Zacks Consensus Estimate and remained flat year over year, while net sales exceeded expectations and grew year over year [1][3]. Financial Performance - Earnings per share (EPS) was reported at 52 cents, aligning with the consensus estimate, while net sales reached $1.96 billion, surpassing the consensus mark of$1.95 billion by 0.5% and increasing by 3.4% from the previous year [3]. - Daily sales averaged $31.1 million, reflecting a 5$10K or more per month with Fastenal contributed to unit sales growth, although overall customer sites declined in both manufacturing and non-manufacturing segments [4][8][9]. - The company's Digital Footprint increased to 61% of sales from 59.2% in the previous year, with expectations to reach 66-68% by 2025 [7]. Operational Metrics - Selling, general and administrative expenses as a percentage of net sales rose to 25% from 24.9% year over year, influenced by one less selling day and increased employee compensation [11]. - Operating margin was reported at 20.1%, slightly below the projected 20.4%, down 50 basis points from the previous year [12]. Cash Flow and Shareholder Returns - As of March 31, 2024, Fastenal had cash and cash equivalents of $231.8 million, a decrease from$255.8 million at the end of 2023. The company returned $246.7 million to shareholders in dividends during the quarter [13].