We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fastenal (FAST) International Revenue Performance Explored
Read MoreHide Full Article
Have you looked into how Fastenal (FAST - Free Report) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of industrial and construction fasteners, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Upon examining FAST's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The recent quarter saw the company's total revenue reaching $1.91 billion, marking an improvement of 3.5% from the prior-year quarter. Next, we'll examine the breakdown of FAST's revenue from abroad to comprehend the significance of its international presence.
Unveiling Trends in FAST's International Revenues
Of the total revenue, $58.9 million came from Other foreign countries during the last fiscal quarter, accounting for 3.1%. This represented a surprise of -0.81% as analysts had expected the region to contribute $59.38 million to the total revenue. In comparison, the region contributed $58.2 million, or 3%, and $55.6 million, or 3%, to total revenue in the previous and year-ago quarters, respectively.
Canada and Mexico generated $264.1 million in revenues for the company in the last quarter, constituting 13.8% of the total. This represented a surprise of +1.38% compared to the $260.5 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada and Mexico accounted for $263.9 million (13.8%), and in the year-ago quarter, it contributed $245.7 million (13.3%) to the total revenue.
International Revenue Predictions
It is projected by analysts on Wall Street that Fastenal will post revenues of $1.85 billion for the ongoing fiscal quarter, an increase of 5.4% from the year-ago quarter. The expected contributions from Other foreign countries and Canada and Mexico to this revenue are 3.1% and 13.5%, translating into $57.31 million and $250.84 million, respectively.
For the full year, a total revenue of $7.58 billion is expected for the company, reflecting an increase of 3.2% from the year before. The revenues from Other foreign countries and Canada and Mexico are expected to make up 3.1% and 13.6% of this total, corresponding to $235.48 million and $1.03 billion respectively.
Key Takeaways
Fastenal's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
The stock has increased by 10.4% over the past month compared to the 3.8% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Fastenal, has increased 3.7% during this time frame. Over the past three months, the company's shares have experienced a gain of 15.5% relative to the S&P 500's 3.4% increase. Throughout this period, the sector overall has witnessed a 6% increase.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fastenal (FAST) International Revenue Performance Explored
Have you looked into how Fastenal (FAST - Free Report) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of industrial and construction fasteners, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Upon examining FAST's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The recent quarter saw the company's total revenue reaching $1.91 billion, marking an improvement of 3.5% from the prior-year quarter. Next, we'll examine the breakdown of FAST's revenue from abroad to comprehend the significance of its international presence.
Unveiling Trends in FAST's International Revenues
Of the total revenue, $58.9 million came from Other foreign countries during the last fiscal quarter, accounting for 3.1%. This represented a surprise of -0.81% as analysts had expected the region to contribute $59.38 million to the total revenue. In comparison, the region contributed $58.2 million, or 3%, and $55.6 million, or 3%, to total revenue in the previous and year-ago quarters, respectively.
Canada and Mexico generated $264.1 million in revenues for the company in the last quarter, constituting 13.8% of the total. This represented a surprise of +1.38% compared to the $260.5 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada and Mexico accounted for $263.9 million (13.8%), and in the year-ago quarter, it contributed $245.7 million (13.3%) to the total revenue.
International Revenue Predictions
It is projected by analysts on Wall Street that Fastenal will post revenues of $1.85 billion for the ongoing fiscal quarter, an increase of 5.4% from the year-ago quarter. The expected contributions from Other foreign countries and Canada and Mexico to this revenue are 3.1% and 13.5%, translating into $57.31 million and $250.84 million, respectively.For the full year, a total revenue of $7.58 billion is expected for the company, reflecting an increase of 3.2% from the year before. The revenues from Other foreign countries and Canada and Mexico are expected to make up 3.1% and 13.6% of this total, corresponding to $235.48 million and $1.03 billion respectively.
Key Takeaways
Fastenal's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Fastenal holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Fastenal's Stock Price
The stock has increased by 10.4% over the past month compared to the 3.8% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Fastenal, has increased 3.7% during this time frame. Over the past three months, the company's shares have experienced a gain of 15.5% relative to the S&P 500's 3.4% increase. Throughout this period, the sector overall has witnessed a 6% increase.