Fastenal Stock Jumps More Than 7% to Record High as Sales at Onsite Locations Rise

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published January 18, 2024
Fastenal logo on a smartphone

Igor Golovniov / SOPA Images / LightRocket via Getty Images

Key Takeaways

  • Fastenal Co. shares rose 7.2% to an all-time high as the biggest U.S. supplier of fasteners beat profit and sales estimates for the fourth quarter.
  • The company said revenue growth was driven by demand at its onsite locations—where sales and service are provided in or near a customer facility—and from large customers.
  • CEO Daniel Florness pointed out that the company did especially well in December, when daily sales were up 5.3%, “beating normal sequential seasonality.”

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

The biggest fastener supplier in the U.S. reported fourth-quarter earnings per share (EPS) of 46 cents, with revenue up 3.7% to $1.76 billion. Both exceeded forecasts.

Fastenal said that the revenue growth was primarily driven by demand at its onsite locations, particularly those that opened in 2022 and 2023, and from large customers. Onsite locations offer Fastenal sales and service at or near a customer facility.

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

CEO Daniel Florness pointed out that the company did especially well in December, when daily sales were up 5.3%, “beating normal sequential seasonality.” He said warehousing had “strong holiday-related sell-through, favorable product mix, and easier comparisons.”

Florness said the company had solid results despite softness in the manufacturing sector.

Shares of Fastenal gained 7.2% to finish at a record high of $67.93. The stock has gained 45% over the past year.

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  1. Fastenal Co. "Fastenal Co. Reports 2023 Annual and Fourth-Quarter Earnings."

  2. Fastenal Co. "CEO MESSAGES ON 4Q23."

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