Why Industrial And Construction Supplies Distributor Fastenal's Shares Are Down Today
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Financial Performance: Fastenal Company reported first-quarter FY24 sales growth of 1.9% Y/Y, missing consensus expectations.
- Operational Highlights: Net daily sales growth increased by 1.9% Y/Y, with higher unit sales driven by larger customers and recent Onsite locations.
- Digital Footprint: Fastenal's digital sales represented 59.2% of total sales in the quarter, up from 54.1% in the same period last year.
- Margins and Earnings: The company's gross margin contracted to 45.5%, operating income declined by 0.8% Y/Y, and EPS missed expectations at $0.52.
- Dividend and Outlook: Fastenal declared a dividend per share of $0.39, and for 2024, it expects specific numbers for Onsite signings and device installations.
Analyst Views on FAST
Wall Street analysts forecast FAST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FAST is 45.00 USD with a low forecast of 38.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
3 Hold
3 Sell
Hold
Current: 44.780
Low
38.00
Averages
45.00
High
52.00
Current: 44.780
Low
38.00
Averages
45.00
High
52.00
About FAST
Fastenal Company is engaged in the wholesale distribution of industrial and construction supplies. The Company is a distributor of threaded fasteners, bolts, nuts, screws, studs, and related washers, as well as miscellaneous supplies and hardware, such as pins, machinery keys, concrete anchors, metal framing systems, wire rope, struts, rivets, and related accessories. Its business tools include Fastenal Managed Inventory (FMI), Bin stock (FASTStock and FASTBin) and Industrial vending (FASTVend). The Company also invests in digital solutions that aim to deliver value for its customers, leverage local inventory for same-day solutions, and provide service. It serves general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local governmental entities, schools, and certain retail trades.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
