Summary
Fastenal Company (FAST) reported its first-quarter results for 2016, indicating a modest increase in net sales to $986.7 million, up 3.5% year-over-year, though daily sales growth moderated to 1.9%. This slowdown was primarily attributed to a weakening economy impacting both its fastener and non-fastener product lines. Despite the challenging macroeconomic environment, the company demonstrated resilience through its expanding industrial vending business and its focus on customer service. Operating income saw a slight decrease, reflecting the impact of sales growth pressures and increased operating expenses related to personnel investments, while net earnings remained relatively stable at $126.2 million.
Financial Highlights
52 data pointsBeta
Financial Statements
Beta
| Revenue | $986.70M |
| Cost of Revenue | $495.20M |
| Gross Profit | $491.50M |
| SG&A Expenses | $290.20M |
| Operating Income | $201.20M |
| Interest Expense | $1.40M |
| Net Income | $126.20M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 1.16B |
| Shares Outstanding (Diluted) | 1.16B |
Key Highlights
- 1Net sales increased by 3.5% to $986.7 million in Q1 2016 compared to $953.3 million in Q1 2015.
- 2Daily sales growth decelerated to 1.9% in Q1 2016 from 8.8% in Q1 2015, reflecting a weaker economic environment.
- 3Gross profit margin slightly declined to 49.8% from 50.8% year-over-year, primarily due to changes in product and customer mix.
- 4Operating income decreased by 1.2% to $201.2 million, impacted by slower sales growth and increased operating expenses.
- 5Net earnings remained stable at $126.2 million, with diluted EPS at $0.44, consistent with the prior year.
- 6Inventories increased by 11.2% year-over-year to $965.1 million, reflecting investments in store inventory for the CSP 16 format and other growth initiatives.
- 7The company continued its share repurchase program, buying back 1.6 million shares in Q1 2016.
Frequently Asked Questions
Fastenal reported a 3.5% increase in net sales to $986.7 million for the first quarter of 2016, up from $953.3 million in the same period of 2015. However, daily sales growth slowed to 1.9%, indicating a moderation in sales momentum compared to the previous year.
Gross profit margin slightly decreased to 49.8% from 50.8% year-over-year, mainly due to shifts in product and customer mix. Operating income also saw a slight decline of 1.2% to $201.2 million. Despite these pressures, net earnings remained stable at $126.2 million, with earnings per share at $0.44.
Sales performance is influenced by broader economic conditions, particularly in the manufacturing and non-residential construction sectors. The company noted a weakening economy impacting both its fastener and non-fastener product lines. However, growth drivers like the industrial vending business, national account signings, and the CSP 16 store merchandising format are contributing positively, albeit facing headwinds from the overall economic climate.
The company increased its inventory by 11.2% year-over-year, investing in store inventory for the CSP 16 format and supporting growth initiatives like industrial vending and national accounts. While accounts receivable also grew with sales, the company is focused on managing operational working capital effectively to support its business dynamics.