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.