Industrial supplier Fastenal (NASDAQ: FAST) will be reporting results this Wednesday morning. Here’s what investors should know.
Fastenal beat analysts’ revenue expectations last quarter, reporting revenues of $2.39 billion, up 14.7% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates.
Is Fastenal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Fastenal’s revenue to grow 14.1% year on year, improving from the 11.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Fastenal has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Fastenal’s peers in the industrial distributors segment, only Richardson Electronics has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 18.9%. The stock price was unchanged following the results.
Read our full analysis of Richardson Electronics’s earnings results here.In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.3% on average over the last month. Fastenal is up 4.1% during the same time and is heading into earnings with an average analyst price target of $49.45 (compared to the current share price of $51.48).
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