Fastenal(US:FAST) ZACKS·2026-01-15 13:35Core Insights - Fastenal Company (FAST) is set to report its fourth-quarter 2025 results on January 20, with previous quarter earnings per share (EPS) and net sales missing estimates by 3.3% and 0.5%, respectively, but showing growth of 11.5% and 11.7% [1] Group 1: Earnings and Sales Estimates - The Zacks Consensus Estimate for EPS for the fourth quarter remains unchanged at 26 cents per share, indicating a 13% year-over-year growth [2] - The consensus for net sales is projected at $2.05 billion, reflecting a 12.2% increase from the previous year's figure of $1.82 billion [2] Group 2: Sales Performance Factors - Fastenal's sales performance in Q4 is expected to improve year-over-year due to favorable pricing changes and various sales initiatives, including a focus on digital growth and inventory management [3] - Daily sales in November 2025 grew by 11.8% year-over-year to $33 million, although there was a 1.5% decline from October 2025 [4] - In November 2025, daily sales in Heavy Manufacturing and Other Manufacturing increased by 13% and 12.9%, respectively, while Non-residential Construction grew by 8.4% [5] Group 3: Margin and Cost Management - Fastenal's bottom line is expected to improve due to a favorable price-cost mix, ongoing expansion projects, and effective cost control strategies [7] - The company anticipates a sequential decline in gross margin by 40 basis points to 44.9% for the fourth quarter, although this represents a 10 basis point increase year-over-year [10] - Selling, general, and administrative expenses as a percentage of net sales are expected to contract by 90 basis points to 25% for the upcoming quarter [9] Group 4: Earnings Prediction and Model Insights - Fastenal's fourth-quarter EPS is projected to rise by 13% year-over-year, with net sales expected to increase by 12% driven by pricing strength and manufacturing demand [8] - The model indicates that Fastenal may not achieve an earnings beat this quarter, with an Earnings ESP of -0.64% [11]