Fastenal Company ($FAST) Earnings (Q1 FY22)

Fastenal Company ($FAST) Earnings and Opinion:


Fastenal Company is a company in the Industrials sector and operates in the Industrial Distribution industry. The company engages in the wholesale distribution of industrial and construction supplies in North America and Internationally. Fastenal was founded in 1967 and is currently headquartered in Winona, Minnesota. The company made its debut trading on the stock market in 1987.

Fastenal Company EPS and Revenue (Q1 FY22):

  • EPS of $0.47 beating expectations of $0.44
  • Revenue of $1.7B beating expectations of $1.68B
  • EPS was up 27.8% (YOY) and Revenue was up 20.3% (YOY) 
Fastenal Company Other Highlights (Q1 FY22):
  • Net earnings of $269.6M
  • Operating income of $358M
Fastenal Dividend Information:
  • Dividend of $0.31 per share
  • Dividends will equate to $1.24 per year per share
Opinion:
Fastenal traded higher today after reporting earnings before the stock market opened for trading this morning. The company beat revenue and EPS estimates. Fastenal showed some solid growth in both of those categories, priming it for hopefully a big year in fiscal 2022. The company is continuing to grow in acquiring more and more sites to deliver their goods. Looking at the valuation side of this company, it took it a while to get growing on the stock market as it traded in the single digits and teens for most of its life on the stock market. Recently, it has taken off and seemingly grown at an exponential rate. This is also a good sign for the company as it is becoming more attractive to investors on the market. The company has paid a dividend for a long time but just changed it to a quarterly dividend a little over a decade ago and it has shown some growth in that category as well. The stock doesn't seem to be taking as much of a hit as we have seen in other companies. I think it is due to the fact that most of the supplies they provide are probable inelastic for the construction and industry companies. This is solid news for Fastenal as they will be able to raise costs if need be without affecting customer retention. Personally, I haven't looked into this stock enough to make a firm decision whether to buy or not. However, based on this earnings report and the current economic environment, it only seems right to possibly add this to your portfolio. The company seems to have some solid value and is showing some solid growth rates on top of it.

*Information from Fastenal Company, Yahoo Finance, Nasdaq
*Estimates attained from Zacks

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