Fastenal Shares Slide After Q2 Results, Clocks 18% Sales Growth

Fastenal Co FAST reported second-quarter FY22 sales growth of 18% year-over-year to $1.78 billion, marginally below the consensus of $1.79 billion. Fastenal's net daily sales also increased by 18% Y/Y.
Digital Footprint represented 47.9% of sales in Q2, an increase from 41.4% in 2Q21.
Gross profit improved by 18.1% to $827.6 million, while the gross margin was flat at 46.5%.
The operating income increased by 20.7% Y/Y to $383.4 million, and the margin expanded 50 bps to 21.6%.
Net earnings were $287.1 million, an increase of 19.8% Y/Y. EPS improved to $0.50 from $0.42 in 2Q21, in line with the consensus of $0.50.
Weighted FASTVend/FASTBin signings (MEUs) were 5,490 down 6% from 5,843 a year ago.
Fastenal generated cash from operating activities for the quarter of $151.2 million (-11.8% Y/Y).
Total debt was $505 million at the end of the quarter, or 13.7% of total capital. It held cash and equivalents of $247.9 million as of June 30, 2022.
The company signed 102 new Onsite locations in the quarter. It expects 375 - 400 annual Onsite signings for FY22.
Fastenal's signings of FMI devices in Q2 and year-to-date 2022 have improved slightly on a sequential basis but at a slower pace. As a result, the company now expects the 2022 signings goal for weighted FASTBin and FASTVend devices to be 21,000 to 23,000 MEUs, a reduction from the previous goal of 23,000 to 25,000 MEUs.
Price Action: FAST shares are trading lower by 4.38% at $47.80 on the last check Wednesday.

Momentum80.19

Growth50.85

Quality71.51

Value27.00

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