Early Access

10-QPeriod: Q2 FY2024

FASTENAL CO Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 17, 2024For Securities:FAST

Summary

Fastenal Company (FAST) reported solid revenue growth of 1.8% for both the three and six-month periods ending June 30, 2024, reaching $1.92 billion and $3.81 billion, respectively. While overall net sales saw a modest increase, the company experienced a slight decline in net income and diluted EPS compared to the prior year. This dip is attributed to a lower gross profit margin (45.1% vs. 45.5% YoY in Q2) due to an unfavorable customer and product mix, and temporary supply chain inefficiencies, coupled with a slight increase in SG&A expenses as a percentage of sales (24.9% vs. 24.6% YoY in Q2). The company continues to invest in its growth drivers, notably expanding its Onsite locations and FMI (FASTStock, FASTBin, FASTVend) technology. The Digital Footprint, representing sales through FMI and eBusiness, now accounts for 59.4% of total sales in the second quarter, up from 55.3% last year, highlighting a strategic shift towards digital solutions. Despite a dip in operating income, Fastenal maintained a strong balance sheet with a debt-to-capital ratio of 6.3% and adequate liquidity, though capital expenditures are expected to increase in 2024.

Financial Highlights

49 data points
Beta

Revenue

$1.92B

0.5% Gross Margin

Net Income

$292.70M

0.2% Net Margin

EPS (Diluted)

$0.25

Total Assets

$4.60B

Cash & Equivalents

$255.50M

Free Cash Flow

$201.90M

Financial Statements
Beta
Revenue$1.92B
Cost of Revenue$1.05B
Gross Profit$863.50M
SG&A Expenses$476.60M
Operating Income$386.90M
Net Income$292.70M
EPS (Basic)$0.26
EPS (Diluted)$0.25
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Revenue increased by 1.8% to $1.92 billion in Q2 2024 and $3.81 billion for the six months ended June 30, 2024.
  • 2Net income decreased by 1.8% to $292.7 million in Q2 2024 and 0.5% to $590.4 million for the six months ended June 30, 2024.
  • 3Diluted EPS declined slightly to $0.51 in Q2 2024 and $1.03 for the six months ended June 30, 2024.
  • 4Gross profit margin decreased to 45.1% in Q2 2024 from 45.5% in Q2 2023, driven by unfavorable product/customer mix and supply chain inefficiencies.
  • 5SG&A expenses as a percentage of net sales increased slightly to 24.9% in Q2 2024 from 24.6% in Q2 2023.
  • 6The company continues to expand its 'Digital Footprint,' with digital sales comprising 59.4% of total sales in Q2 2024, up from 55.3% in Q2 2023.
  • 7Full-year 2024 capital expenditures are projected to increase to a range of $235.0 million to $255.0 million, up from $160.6 million in 2023.

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