Fastenal Q1 Highlights: 9.1% Sales Growth, EPS Beat, Margin Pressure & More

Fastenal Company FAST reported Q1 sales growth of 9.1% Y/Y to $1.859 billion, marginally missing the consensus of $1.86 billion.
The company experienced higher unit sales on higher underlying market demand tied to industrial capital goods and commodities.
The overall impact of product pricing on net sales in the first quarter of 2023 was 290 to 320 basis points compared to Q1 FY22.
Gross profit margin contracted 90 basis points Y/Y to 45.7% due to lower unfavorable customer and product mix.
Operating income margin expanded 20 bps Y/Y to 21.2%.
Fastenal reported Q1 EPS of $0.52, up 10.4% Y/Y and better than the consensus of $0.50.
Weighted FASTVend/FASTBin signings (MEUs) were 5,902, higher than 5,329 a year ago.
Fastenal generated cash from operating activities for the quarter of $388.5 million, compared to $230.0 million a year ago.
Total debt was $400 million at the end of the quarter or 10.9% of total capital. It held cash and equivalents of $239.8 million as of March 31, 2023.
The company signed 89 new Onsite locations in the quarter. It expects 375 - 400 annual signings for FY23.
For FY23, the company's goal for weighted FASTBin and FASTVend device signings remains at 23,000 to 25,000 MEUs.
Price Action: FAST shares are down 3.25% at $50.85 during the premarket session on the last check Thursday.
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