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Fastenal Reports Q1 Earnings: Potential Indicator for U.S. Industry





Date Published:
Author: CML News

Lede

Industrial distributor, Fastenal's first quarter earnings report shows stable profit margins and a drop in inflation, which could be a positive indicator for the industrial economy in the U.S.

 

Summary

  • Fastenal reported Q1 earnings per share of 52 cents, beating Wall Street expectations by one cent.
  • The report shows stable profit margins and a drop in inflation, which could indicate a positive trend for the industrial economy.
  • The Institute for Supply Management Purchasing Manager Index has been below 50 for five consecutive months, indicating a shrinking sector.
  • Despite this, Fastenal and the Institute for Supply Management PMI are good real-time reads on the industrial economy, and Fastenal's report shows that things are looking slightly better than expected.
  • Pricing was up 3% YoY, and profit margins increased to 21.%, up from 19.6% in Q4 2022.
  • Sales at 82 of Fastenal's top 100 customer accounts grew in the quarter.
  • Nonresidential construction markets saw a negative impact, with Fastenal's average daily sales falling 2.4% YoY.
  • Fastenal management will hold a conference call to discuss the results and the state of the U.S. industrial economy.
  • Fastenal's stock is up 11% YTD, trading at about 27 times estimated 2023 earnings, which is slightly lower than the past few years.

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