Fastenal shares gain over 2% as Q3 earnings top estimates

WINONA, Minn. - Fastenal Company (NASDAQ:FAST ) reported third-quarter earnings that beat analyst expectations, sending shares up 2.8% in early trading Thursday.

The industrial and construction supplies distributor posted adjusted earnings per share of $0.52, topping the consensus estimate of $0.51. Revenue came in at $1.91 billion, in line with analyst projections.

Fastenal's sales increased 3.5% year-over-year in Q3, while daily sales growth was 1.9%. The company said Hurricane Helene disrupted operations in some regions, reducing daily sales by an estimated 5 to 25 basis points.

"We continued to experience a divergence in the performance of our fastener versus our non-fastener product lines in the third quarter of 2024," said CEO Dan Florness. "This primarily relates to fasteners being more heavily oriented toward production of final goods than maintenance, resulting in greater susceptibility to periods of weaker industrial production."

Non-fastener product sales grew 4.7% in Q3, while fastener sales declined 4.0%. Safety supplies sales increased 6.8%.

Gross profit margin decreased to 44.9% from 45.9% a year ago, which the company attributed to unfavorable customer and product mix, higher import duties, and lower supplier rebates.

Fastenal signed 93 new onsite locations during the quarter, bringing its total to 1,986 active sites as of September 30, up 11.7% year-over-year. The company maintained its full-year target of 375 to 400 new onsite signings for 2024.

Looking ahead, Fastenal expects to invest $235 million to $255 million in property and equipment for the full year 2024, up from $160.6 million in 2023.

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Source: Investing.com