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Fastenal's (FAST) January ADS Hit by Weather, Rise 1.6%
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Fastenal Company (FAST - Free Report) recently released its January sales report, wherein average daily sales grew 1.6% to $29.1 million, moderating sequentially as well as annually due to bad weather. In the prior month, daily sales registered 5.3% growth, and in the year-ago period, the same registered 11.2% increase.
Net sales in January 2024 were $639.9 million, reflecting an increase of 6.4% year over year. January 2024 had 22 business days compared with 21 days a year ago. This has contributed to 4.8% year-over-year growth in the month.
The weather in January 2024 is estimated to have had a negative impact ranging from 1.2% to 1.5% during the month.
End-Market Perspective, Product Lines & Customers
From an end-market perspective, heavy manufacturing sales improved 3.3% for the month and other manufacturing inched up 0.7% from a year ago. Total manufacturing registered 4% growth in January 2024. Non-residential construction dropped 8.6% compared with a 1.7% decrease reported in January 2023. The average daily sales growth rate in non-residential and manufacturing end markets declined in January from the prior month.
Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners witnessed a 6% decline in sales last month against 11.6% growth in the year-ago period. Safety products grew 9.7% in January 2024 compared with a rise of 6.2% a year ago. In January 2024, Other categories improved 3.3% compared with a 14.1% increase a year ago.
Geographically, sales in the United States grew 0.7% (compared with 11.2% a year ago), while Canada/Mexico grew 4.8% (compared with 17.3% a year ago). Rest of World sales growth was 12.9% against an 8.5% decline registered in the year-ago period.
In terms of customer/channel, National account daily sales growth advanced 6% in January from a year ago, given the fact that 60% of the top 100 accounts and 49.1% of public branches are expanding. Yet, non-national accounts showed a 6% decline year over year for the month. In the year-ago period, daily sales growth in non-national accounts was up 6% year over year.
Image Source: Zacks Investment Research
Shares of the company have gained 29.9% over the past year, outperforming the industry‘s 9.6% growth. Although daily sales have moderated sequentially and annually, the moderated pace of daily sales this month aligns with management's remarks regarding a weighted improvement in the second half of the year.
Despite tough year-ago comparisons, Fastenal’s decent large customers, its leverage in its digital strategy, onsite/offsite mix and market share gains across its product categories are expected to drive growth.
Zacks Rank and Other Key Picks
Fastenal currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail and Wholesale Sector are:
Carrols Restaurant Group, Inc. (TAST - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 102% on average. Shares of TAST have rallied 335.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TAST’s 2024 sales and EPS indicates 3.8% and 25.5% growth, respectively, from the year-ago period’s levels.
Darden Restaurants, Inc. (DRI - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 4.2%, on average. Shares of DRI have gained 10.9% in the past year.
The Zacks Consensus Estimate for DRI’s 2024 sales and EPS indicates 9.9% and 10.9% growth, respectively, from the year-ago period’s levels.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 34.5%, on average. The stock has gained 21.2% in the past year.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS suggests rises of 12.8% and 14.3%, respectively, from the year-ago period’s levels.
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Fastenal's (FAST) January ADS Hit by Weather, Rise 1.6%
Fastenal Company (FAST - Free Report) recently released its January sales report, wherein average daily sales grew 1.6% to $29.1 million, moderating sequentially as well as annually due to bad weather. In the prior month, daily sales registered 5.3% growth, and in the year-ago period, the same registered 11.2% increase.
Net sales in January 2024 were $639.9 million, reflecting an increase of 6.4% year over year. January 2024 had 22 business days compared with 21 days a year ago. This has contributed to 4.8% year-over-year growth in the month.
The weather in January 2024 is estimated to have had a negative impact ranging from 1.2% to 1.5% during the month.
End-Market Perspective, Product Lines & Customers
From an end-market perspective, heavy manufacturing sales improved 3.3% for the month and other manufacturing inched up 0.7% from a year ago. Total manufacturing registered 4% growth in January 2024. Non-residential construction dropped 8.6% compared with a 1.7% decrease reported in January 2023. The average daily sales growth rate in non-residential and manufacturing end markets declined in January from the prior month.
Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners witnessed a 6% decline in sales last month against 11.6% growth in the year-ago period. Safety products grew 9.7% in January 2024 compared with a rise of 6.2% a year ago. In January 2024, Other categories improved 3.3% compared with a 14.1% increase a year ago.
Geographically, sales in the United States grew 0.7% (compared with 11.2% a year ago), while Canada/Mexico grew 4.8% (compared with 17.3% a year ago). Rest of World sales growth was 12.9% against an 8.5% decline registered in the year-ago period.
In terms of customer/channel, National account daily sales growth advanced 6% in January from a year ago, given the fact that 60% of the top 100 accounts and 49.1% of public branches are expanding. Yet, non-national accounts showed a 6% decline year over year for the month. In the year-ago period, daily sales growth in non-national accounts was up 6% year over year.
Image Source: Zacks Investment Research
Shares of the company have gained 29.9% over the past year, outperforming the industry‘s 9.6% growth. Although daily sales have moderated sequentially and annually, the moderated pace of daily sales this month aligns with management's remarks regarding a weighted improvement in the second half of the year.
Despite tough year-ago comparisons, Fastenal’s decent large customers, its leverage in its digital strategy, onsite/offsite mix and market share gains across its product categories are expected to drive growth.
Zacks Rank and Other Key Picks
Fastenal currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail and Wholesale Sector are:
Carrols Restaurant Group, Inc. (TAST - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 102% on average. Shares of TAST have rallied 335.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TAST’s 2024 sales and EPS indicates 3.8% and 25.5% growth, respectively, from the year-ago period’s levels.
Darden Restaurants, Inc. (DRI - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 4.2%, on average. Shares of DRI have gained 10.9% in the past year.
The Zacks Consensus Estimate for DRI’s 2024 sales and EPS indicates 9.9% and 10.9% growth, respectively, from the year-ago period’s levels.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 34.5%, on average. The stock has gained 21.2% in the past year.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS suggests rises of 12.8% and 14.3%, respectively, from the year-ago period’s levels.