NASDAQ$FAST

Fastenal Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Fastenal's Q4 2023 performance reflected increased sales driven by Onsite locations and large customers, with gross profit margin expansion and improved operating income despite slower sales growth.

Fastenal Company reported a 3.7% increase in net sales for Q4 2023, driven by growth in Onsite locations and large customers. Gross profit margin improved to 45.5%, and operating income increased by 6.3%. Diluted net earnings per share rose to $0.46, up from $0.43 in the same period last year.

  • Net sales increased by 3.7% compared to Q4 2022, driven by higher unit sales from Onsite locations and large customers.
  • Gross profit margin improved to 45.5% due to better product margins in fasteners and safety supplies, and positive price-cost dynamics.
  • Operating income, as a percentage of net sales, increased to 20.1% from 19.6% in the prior year.
  • The company signed 58 new Onsite locations in Q4 2023, bringing the total active Onsite locations to 1,822, a 12.3% increase year-over-year.

Headline financials

Total Revenue

$1.76B

Previous: $1.7B+3.7%
EPS (adj)

$0.46

Previous: $0.43+7.0%
Non-Residential Const.

-$7.40

Previous: -$0.60-1133.3%
Capital Expenditures

-$36.3M

Previous: $42.8M-184.8%
Net Income

$266M

Previous: $246M+8.5%
Operating Income

$354M

Previous: $333M+6.3%
Gross Profit

$799M

Previous: $768M+4.0%
Stock-Based Comp

$1.7M

Previous: $2.8M-39.3%

Revenue & EPS history

Fastenal · Revenue · Quarterly

$1.76B

Q4 2023+3.7%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Fastenal · $461M total across 1 segment · Q1 2021

  • Fastener Products
    $461M+2.3%

Forward guidance

Fastenal anticipates capital expenditures between $225.0 and $245.0 million in 2024. The company's goal for Onsite signings in 2024 is 375 to 400 and for weighted FASTBin and FASTVend device signings in 2024 is 26,000 to 28,000 MEUs.

Tailwinds

  • Spending to complete our Utah distribution center
  • Investments in picking technology and equipment in our hubs and branches
  • Higher outlays for FMI hardware reflecting our higher targeted signings and a slight build in device inventory
  • Increase in spending on information technology
  • Strategic rationalization that has produced the meaningful decline in our traditional branch network in the United States and Canada since 2013 is largely completed, and we expect reduced closing activity beginning in 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.0%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.0%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+14.2%

Q3 2019

Best reaction

-9.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-6.9%-12.2%
Q4 2025-2.5%+0.3%+5.6%
Q3 2025-7.6%-7.3%-10.5%
Q2 2025-1.1%+1.4%-3.6%
Q1 2025+6.4%+6.1%+3.7%
Q4 2024+1.8%+1.1%+0.0%
Q3 2024+9.6%+11.1%+19.1%
Q2 2024+5.7%+9.1%+3.5%
Q1 2024-5.7%-8.0%-9.2%
Q4 2023+9.4%+9.7%+10.8%
Q3 2023+7.3%+7.2%+7.1%
Q2 2023-2.1%-3.3%-2.2%
Q1 2023+1.4%+2.5%+4.2%
Q4 2022+3.1%+4.3%+12.4%
Q3 2022-3.9%+4.0%+13.4%
Q2 2022-5.3%-4.2%+11.6%
Q1 2022-2.9%-4.7%-8.7%
Q4 2021-3.8%-1.6%-12.3%
Q3 2021+2.7%+6.7%+13.5%
Q2 2021-1.5%-0.8%+2.4%
Q1 2021-1.3%-0.3%+5.0%
Q4 2020-4.5%-4.5%-6.3%
Q3 2020-5.6%-5.0%-2.7%
Q2 2020+1.5%+1.9%+10.7%
Q1 2020+7.1%+11.3%+19.9%
Q4 2019-4.0%-3.7%+2.7%
Q3 2019+14.2%+14.8%+19.5%
Q2 2019-1.0%+0.1%-4.8%
Q1 2019+6.9%+6.6%+0.7%
Q4 2018+9.7%+9.2%+16.4%
Q3 2018-7.9%-5.3%-1.6%
Q2 2018+11.7%+11.9%+16.5%
Q1 2018-6.8%-6.9%-4.9%
Q4 2017-3.9%-2.0%-1.2%
Q3 2017+2.4%+5.3%+6.1%
Q2 2017-1.0%-2.5%-2.2%
Q1 2017-9.5%-9.0%-11.1%
Q4 2016+4.8%+5.6%+5.1%
Q3 2016-7.3%-9.0%+6.6%
Q2 2016-4.5%-4.2%-4.2%
Q1 2016-2.4%
Q4 2015-6.3%
Q3 2015-2.5%
Q2 2015-3.1%
Q1 2015+3.3%
Q4 2014+0.7%
Q3 2014-7.7%
Q2 2014-5.5%
Q1 2014-0.6%
Q4 2013-3.2%
Q3 2013-4.1%
Q2 2013-1.1%
Q1 2013-4.1%
Q4 2012+3.4%
Q3 2012+7.1%
Q2 2012+8.6%
Q1 2012+1.1%
Q4 2011-0.9%
Q3 2011+6.9%
Q2 2011+0.2%
Q1 2011+2.1%
Q4 2010+1.4%
Q3 2010+0.9%
Q2 2010+2.2%
Q1 2009-2.8%
Q1 2010+0.2%
Q4 2009+0.8%
Q3 2009-2.6%
Q2 2009+0.7%

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