WINONA, Minn. - Fastenal Company (NASDAQ:FAST) reported fourth-quarter results that fell short of analyst estimates, 4.83% following the earnings release on Friday.
The industrial and construction supplies distributor posted earnings per share of $0.46, missing the consensus forecast of $0.48. Revenue came in at $1.82 billion, below expectations of $1.84 billion.
Net sales increased 3.7% year-over-year to $1.82 billion in Q4. However, daily sales growth slowed to 2.1% compared to 2.3% in the third quarter, reflecting a continued soft manufacturing environment throughout 2024.
"The slow rate of growth reflects continuation of the soft manufacturing environment that has been sustained throughout 2024," Fastenal said in its earnings release.
"This was exacerbated by many of our largest customers enacting unusually sharp production cuts in the last two weeks of December during holiday-related plant shutdowns" the release said.
Gross profit margin declined to 44.8% from 45.5% a year ago, pressured by unfavorable customer and product mix as well as higher freight and import duty costs.
The company signed 56 new Onsite locations in Q4, bringing the full-year total to 358, below its goal of 375 to 400 signings.
"We believe the data that is created through our digital capabilities enhances product visibility, traceability, and control that reduces risk in operations and creates ordering and fulfillment efficiencies for both us and our customers," said CEO Dan Florness.
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