Home News Fastenal stock rises more than 7% to record level as on-site sales increase

Fastenal stock rises more than 7% to record level as on-site sales increase

by SuperiorInvest

Key takeaways

  • Fastenal Co. shares rose 7.2% to an all-time high as the largest U.S. fastener supplier beat earnings and sales estimates for the fourth quarter.
  • The company said revenue growth was driven by demand at its premises (where sales and service are provided at or near the customer’s premises) and from large customers.
  • CEO Daniel Florness noted that the company did especially well in December, when daily sales increased 5.3%, “outperforming normal sequential seasonality.”

Shares of Fastenal Co. (FAST) rose to an all-time high on Thursday as the wholesale distributor of industrial and construction products posted better-than-expected results thanks to higher sales and prices.

The largest U.S. fastener supplier reported fourth-quarter earnings per share (EPS) of 46 cents, with revenue rising 3.7% to $1.76 billion. Both exceeded expectations.

Fastenal said the revenue growth was mainly due to demand at its facilities, particularly those that opened in 2022 and 2023, and large customers. On-site locations offer Fastenal sales and service at or near customer facilities.

Sales of safety supplies increased 9.4%, while sales of fasteners fell 2.3%. Sales of other products increased by 5.3%. The company added that the impact of pricing on net sales was “modestly positive.”

CEO Daniel Florness noted that the company did especially well in December, when daily sales increased 5.3%, “outperforming normal sequential seasonality.” He said storage had “strong holiday-related sell-throughs, a favorable product mix and easier comparisons.”

Florness said the company delivered solid results despite weakness in the manufacturing sector.

Fastenal shares gained 7.2% to finish at an all-time high of $67.93. The stock has gained 45% over the past year.

TradingView


Source Link

Related Posts