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Fastenal Company (FAST - Free Report) ended 2021 on a solid note. The company’s earnings and revenues not only beat the Zacks Consensus Estimate but also improved on a year-over-year basis, given strong demand for manufacturing and construction equipment and supplies along with higher pricing.
Its shares jumped more than 3.4% in the pre-market trading session on Jan 19, after it reported the results.
Earnings & Sales in Detail
The company reported earnings of 40 cents per share, which topped the consensus mark of 37 cents by 8.1% and grew 17.6% from the year-ago period.
Net sales totaled $1,531.8 million, beating the consensus mark of $1,507 million by 1.6% and increasing 12.8% from the year-ago figure of $1,358 million.
It reported daily sales of $24.7 million, reflecting an increase of 14.6% year over year. On a monthly basis, daily sales improved 16.5%, 13.2% and 14.1% in December, November and October, respectively, year over year.
Daily sales of Fastener products (mainly used for industrial production and accounting for approximately 33.5% of fourth-quarter sales) rose 24.2% year over year, backed by higher manufacturing and construction demand as well as increased pricing. Sales of safety products (accounting for 21.4% of fourth-quarter sales) grew 3.5% on a daily basis. The upside was mainly driven by solid growth and higher pricing for traditional manufacturing and construction clients. Sales of the remaining products (accounting for 45.1% of fourth-quarter sales) grew 12.8% year over year.
Fastenal Company Price, Consensus and EPS Surprise
Fastenal signed 274 new Onsite locations during 2021. As of Dec 31, 2021, the company had 1,416 active sites, up 11.9% from the year-ago period. Daily sales through Onsite locations (excluding sales transferred from branches to new Onsites) increased more than 20% from a year ago.
The company continues to expect 375-400 annual Onsite signings in 2022.
Daily sales through weighted FMI devices grew 47.7% for the fourth quarter and represented 35.1% of net sales.
Daily sales to national account customers (representing 57.8% of total quarterly revenues) increased 19.9% on a year-over-year basis for fourth-quarter 2021. Daily sales to non-national account customers (which include government customers and represent 42.2% of total quarterly revenues) rose 7.6% from the prior-year quarter.
Margins
Gross margin of 46.5% for the quarter improved 90 basis points or bps from the prior-year period. The improvement was driven by higher product margin related to safety products and overhead absorption/organizational cost leverage.
Also, operating margin improved 10 bps to 19.6% from the year-ago figure of 19.5%.
2021 Highlights
Net sales came in at $6,010.9 million, up 6.4% from the 2020 level. Earnings of $1.60 per share advanced 7.4% from 2020. Gross margin of 46.2% expanded 70 bps year over year.
Financials
Cash and cash equivalents were $236.2 million as of Dec 31, 2021, slightly down from $245.7 million on Dec 31, 2020. Long-term debt at quarter-end was $330 million, down from $365 million at 2020-end.
For 2021, cash provided by operating activities totaled $770.1 million compared with $1,101.8 million in the year-ago period.
Other top-ranked stocks from the Zacks Retail-Wholesale sector include Arcos Dorados Holdings Inc. (ARCO - Free Report) , Genesco Inc. (GCO - Free Report) and Macy's, Inc. (M - Free Report) .
Arcos Dorados sports a Zacks Rank #1. It has long-term earnings growth of 42.9%. Shares of Arcos Dorados have increased 8.6% in the past year.
The Zacks Consensus Estimate for ARCO’s 2022 sales and earnings per share (EPS) suggests growth of 10.4% and 255.6%, respectively, from the year-ago levels.
Genesco sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 2,739.6%, on average. Shares of Genesco have surged 63.6% in the past year.
The Zacks Consensus Estimate for GCO’s 2022 sales and EPS indicates a rise of 35.6% and 673.7%, respectively, from the year-ago levels.
Macy's currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 313.5%, on average. Shares of Macy’s have increased 106.3% in the past year.
The Zacks Consensus Estimate for M's 2022 sales and EPS suggests growth of 39.6% and 320.4%, respectively, from the year-ago levels.
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Fastenal (FAST) Q4 Earnings & Revenues Beat, Shares Rise
Fastenal Company (FAST - Free Report) ended 2021 on a solid note. The company’s earnings and revenues not only beat the Zacks Consensus Estimate but also improved on a year-over-year basis, given strong demand for manufacturing and construction equipment and supplies along with higher pricing.
Its shares jumped more than 3.4% in the pre-market trading session on Jan 19, after it reported the results.
Earnings & Sales in Detail
The company reported earnings of 40 cents per share, which topped the consensus mark of 37 cents by 8.1% and grew 17.6% from the year-ago period.
Net sales totaled $1,531.8 million, beating the consensus mark of $1,507 million by 1.6% and increasing 12.8% from the year-ago figure of $1,358 million.
It reported daily sales of $24.7 million, reflecting an increase of 14.6% year over year. On a monthly basis, daily sales improved 16.5%, 13.2% and 14.1% in December, November and October, respectively, year over year.
Daily sales of Fastener products (mainly used for industrial production and accounting for approximately 33.5% of fourth-quarter sales) rose 24.2% year over year, backed by higher manufacturing and construction demand as well as increased pricing. Sales of safety products (accounting for 21.4% of fourth-quarter sales) grew 3.5% on a daily basis. The upside was mainly driven by solid growth and higher pricing for traditional manufacturing and construction clients. Sales of the remaining products (accounting for 45.1% of fourth-quarter sales) grew 12.8% year over year.
Fastenal Company Price, Consensus and EPS Surprise
Fastenal Company price-consensus-eps-surprise-chart | Fastenal Company Quote
Vending Trends & Other Growth Drivers
Fastenal signed 274 new Onsite locations during 2021. As of Dec 31, 2021, the company had 1,416 active sites, up 11.9% from the year-ago period. Daily sales through Onsite locations (excluding sales transferred from branches to new Onsites) increased more than 20% from a year ago.
The company continues to expect 375-400 annual Onsite signings in 2022.
Daily sales through weighted FMI devices grew 47.7% for the fourth quarter and represented 35.1% of net sales.
Daily sales to national account customers (representing 57.8% of total quarterly revenues) increased 19.9% on a year-over-year basis for fourth-quarter 2021. Daily sales to non-national account customers (which include government customers and represent 42.2% of total quarterly revenues) rose 7.6% from the prior-year quarter.
Margins
Gross margin of 46.5% for the quarter improved 90 basis points or bps from the prior-year period. The improvement was driven by higher product margin related to safety products and overhead absorption/organizational cost leverage.
Also, operating margin improved 10 bps to 19.6% from the year-ago figure of 19.5%.
2021 Highlights
Net sales came in at $6,010.9 million, up 6.4% from the 2020 level. Earnings of $1.60 per share advanced 7.4% from 2020. Gross margin of 46.2% expanded 70 bps year over year.
Financials
Cash and cash equivalents were $236.2 million as of Dec 31, 2021, slightly down from $245.7 million on Dec 31, 2020. Long-term debt at quarter-end was $330 million, down from $365 million at 2020-end.
For 2021, cash provided by operating activities totaled $770.1 million compared with $1,101.8 million in the year-ago period.
Zacks Rank
Fastenal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Top-Ranked Stocks in Broader Sector
Other top-ranked stocks from the Zacks Retail-Wholesale sector include Arcos Dorados Holdings Inc. (ARCO - Free Report) , Genesco Inc. (GCO - Free Report) and Macy's, Inc. (M - Free Report) .
Arcos Dorados sports a Zacks Rank #1. It has long-term earnings growth of 42.9%. Shares of Arcos Dorados have increased 8.6% in the past year.
The Zacks Consensus Estimate for ARCO’s 2022 sales and earnings per share (EPS) suggests growth of 10.4% and 255.6%, respectively, from the year-ago levels.
Genesco sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 2,739.6%, on average. Shares of Genesco have surged 63.6% in the past year.
The Zacks Consensus Estimate for GCO’s 2022 sales and EPS indicates a rise of 35.6% and 673.7%, respectively, from the year-ago levels.
Macy's currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 313.5%, on average. Shares of Macy’s have increased 106.3% in the past year.
The Zacks Consensus Estimate for M's 2022 sales and EPS suggests growth of 39.6% and 320.4%, respectively, from the year-ago levels.