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Tale of the Tape

Zacks Equity Research

Fastenal (FAST) Misses Q3 Earnings and Sales
October 11, 2016


Trades from $3

Fastenal Company (FAST - Analyst Report) is a national wholesale distributor of industrial and construction supplies. It distributes its products through company-owned stores mostly located in North America. The company has gradually grown from a fastener distributor to a full-line industrial supplier.

Weakness in sales of the industrial fasteners, lower sales to customers in the oil & gas industry, a stronger U.S. dollar, softness in the Canadian business and overall weakness in the industrial economy is hurting the company’s sales. However, Fastenal’s vending trends are improving as efforts on improving the quality of signings/installs paid off.

Investors should also note the recent earnings estimate revisions for FAST has been mostly stable in the last 30 days. However, FAST has an average history in earnings season. Fastenal has delivered two positive earnings surprises in the last four quarters, making an average negative surprise of 1.65%.

Currently, FAST has a Zacks Rank #3 (Hold), but that could definitely change following Fastenal’s earnings report which was just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

FASTENAL Price and EPS Surprise


FASTENAL Price and EPS Surprise | FASTENAL Quote

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: FAST missed earnings. Our consensus earnings estimate called for EPS of 45 cents per share, and the company reported EPS of 44 cents per share. Investors should note that these figures take out stock option expenses.

Revenues: FAST reported revenues of $1,013.1 million, which missed our consensus estimate of $1,014 million.

Key Stats to Note: Fastenal’s total average daily sales increased 1.8% in the third quarter of 2016, higher than a 1.5% increase in the prior-year quarter. It was also higher than 1.6% increase reported in the second quarter.

Check back later for our full write up on this FAST earnings report later!

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