FASTENAL COMPANY Reports First Quarter FY2023 Earnings Results on April 13, 2023.

Earnings Overview

On April 13 2023, FASTENAL COMPANY ($NASDAQ:FAST) announced its earnings results for the first quarter of FY2023, ended on March 31 2023. Revenue for the quarter totaled USD 295.1 million, representing a 9.5% growth from the same period in the preceding fiscal year. Net income also rose 9.1%, reaching USD 1859.1 million year over year.

Transcripts Simplified

With us today are Dan Florness, President and Chief Executive Officer; and Holden Lewis, Senior Vice President, Chief Financial Officer and Chief Operating Officer. Dan: Thank you for joining our second quarter earnings call. This increase in gross margin compared to the first quarter was driven by a favorable product mix and our continued focus on cost containment initiatives.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Fastenal Company. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Fastenal Company. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Fastenal Company. More…

Key Ratios Snapshot

Some of the financial key ratios for Fastenal Company are shown below. More…

Share Price

As reported, the stock opened at $50.9 and closed at $52.3, which was a decrease of 0.4% from its previous closing price of $52.6. The company reported positive earnings results that exceeded analysts’ expectations. Overall, FASTENAL COMPANY’s first quarter FY2023 earnings report was met with positive sentiment and strong performance results. As the company continues to release more quarters and years of financials, investors and analysts alike will continue to watch FASTENAL COMPANY’s stock performance and react accordingly. Live Quote…

Analysis

GoodWhale’s analysis of FASTENAL COMPANY presents a positive picture of the company’s fundamentals. Our star chart indicates that FASTENAL has a health score of 10/10, suggesting that it has strong cashflows and debt and would be able to safely ride out any crisis without the risk of bankruptcy. Apart from its financial health, FASTENAL also scores high in other areas such as asset, dividend, growth, and profitability. Furthermore, GoodWhale has classified FASTENAL as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given FASTENAL’s solid fundamentals and competitive advantage, it is likely to attract the attention of value investors, growth investors, and dividend investors. All three types of investors should be able to find something attractive in FASTENAL’s business. More…

Peers

Fastenal Co is a leading company in the fastener industry and competes with WESCO International Inc, DXP Enterprises Inc, and W.W. Grainger Inc. All four companies are leaders in their respective fields and have a long history of competition.

– WESCO International Inc ($NYSE:WCC)

WESCO International Inc. is a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced logistics services. The company serves commercial and industrial customers in more than 90 countries. WESCO operates through 11 regional businesses, each with a dedicated team of experts that understands the unique needs of the local market.

WESCO has a market cap of $6.47B as of 2022 and a ROE of 16.97%. The company is a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced logistics services. WESCO operates through 11 regional businesses, each with a dedicated team of experts that understands the unique needs of the local market.

– DXP Enterprises Inc ($NASDAQ:DXPE)

DXP Enterprises is a leading provider of integrated maintenance, repair and operations solutions that enable our customers to operate more efficiently and effectively. We are a trusted partner to a broad range of customers in the industrial, energy and other markets, and our mission is to make our customers’ operations more productive, efficient and sustainable.

DXP’s market cap is $483.23M as of 2022. The company has a Return on Equity of 14.04%.

DXP provides a broad range of MRO solutions that help our customers improve their operations. Our products and services include bearings, power transmission, fluid power, tools and equipment, and general maintenance supplies. We also offer a full range of repair and maintenance services, including on-site repairs, field services, and machine tool services. In addition, we offer a wide range of value-added services, such as inventory management, just-in-time delivery, and kitting and assembly.

– W.W. Grainger Inc ($NYSE:GWW)

W.W. Grainger Inc is a Fortune 500 company that provides maintenance, repair and operating supplies and equipment to businesses and institutions worldwide. With a market cap of 27.04B as of 2022 and a Return on Equity of 56.81%, it is clear that the company is doing well. The company has a long history dating back to 1927 and has been a reliable source for businesses and institutions for many years.

Summary

FASTENAL COMPANY delivered strong financial results for the first quarter of FY2023, with total revenue and net income increasing by 9.5% and 9.1%, respectively, year over year. This bodes well for investors, as the company continues to demonstrate consistent and healthy revenue growth. Furthermore, FASTENAL’s solid balance sheet and cash flow position, coupled with its position as a market leader in its industry, makes it an attractive stock for investors looking for higher returns. With no major catalysts in sight, FASTENAL is expected to remain a steady and attractive investment choice.