Preview: Fastenal's Earnings

Fastenal FAST will release its quarterly earnings report on Friday, 2024-10-11. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Fastenal to report an earnings per share (EPS) of $0.51.

Anticipation surrounds Fastenal's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS missed by $0.00, leading to a 0.0% drop in the share price on the subsequent day.

Here's a look at Fastenal's past performance and the resulting price change:

Stock Performance

Shares of Fastenal were trading at $70.61 as of October 09. Over the last 52-week period, shares are up 16.55%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Fastenal

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Fastenal.

Analysts have provided Fastenal with 4 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $73.25, suggesting a potential 3.74% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Ferguson Enterprises, W.W. Grainger and United Rentals, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Ferguson Enterprises, with an average 1-year price target of $231.25, indicating a potential 227.5% upside.
• Analysts currently favor an Neutral trajectory for W.W. Grainger, with an average 1-year price target of $975.5, suggesting a potential 1281.53% upside.
• The consensus among analysts is an Buy trajectory for United Rentals, with an average 1-year price target of $899.5, indicating a potential 1173.9% upside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Ferguson Enterprises, W.W. Grainger and United Rentals are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Fastenal ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. Fastenal is at the bottom for Return on Equity.

About Fastenal

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, it has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,800 on-site locations, and 15 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply chain solutions, such as vending and vendor-managed inventory.

Unraveling the Financial Story of Fastenal

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Fastenal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.76% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Fastenal's net margin is impressive, surpassing industry averages. With a net margin of 15.28%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Fastenal's ROE excels beyond industry benchmarks, reaching 8.45%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Fastenal's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 6.41%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15.

To track all earnings releases for Fastenal visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.