Fastenal (NASDAQ:FAST) Announces Earnings Results

Fastenal (NASDAQ:FAST) posted its earnings results on Monday. The company reported $0.30 EPS for the quarter, hitting analysts’ consensus estimates of $0.30, RTT News reports. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.19 billion. Fastenal had a return on equity of 33.25% and a net margin of 15.39%.Fastenal’s quarterly revenue was up 12.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.52 earnings per share.

Here are the key takeaways from Fastenal’s conference call:

• Fastenal delivered a strong operational quarter with 12.4% daily sales growth (third consecutive quarter of double-digit growth), expanded key-account contracts ~8% to ~3,600, and improved operating margin to 20.3% driven by SG&A leverage.
• Tariff- and supplier-driven cost increases outpaced pricing in Q1, leaving the company roughly 40 basis points below its gross-margin target and noting that pricing actions were slower than expected, creating near-term margin headwinds until mid-year.
• Digital and FMI adoption accelerated—digital channels were 61.5% of sales, FMI accounted for ~45% of Q1 sales after adding ~7,000 new device agreements, which management says increases customer stickiness and supports profitable growth.
• Cash generation and capital allocation remain strong with operating cash flow of about $378M (111% of net income), full‑year CapEx guidance of ~$320M to fund hubs/FMI/automation, and $296M returned to shareholders (87% of net income) alongside modest buybacks.

Fastenal Stock Down 2.6%

Shares of NASDAQ:FAST opened at $44.62 on Wednesday. The company has a quick ratio of 2.41, a current ratio of 4.39 and a debt-to-equity ratio of 0.03. Fastenal has a 52-week low of $38.97 and a 52-week high of $50.63. The stock’s fifty day simple moving average is $46.10 and its 200-day simple moving average is $43.73. The company has a market capitalization of $51.24 billion, a P/E ratio of 39.14, a P/E/G ratio of 2.90 and a beta of 0.84.

Fastenal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Tuesday, April 28th will be given a $0.24 dividend. This represents a $0.96 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Tuesday, April 28th. Fastenal’s dividend payout ratio is currently 87.27%.

Fastenal News Summary

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: BofA raised its price target to $55 (about 23% upside from current levels), signaling confidence in Fastenal’s longer-term growth and cash returns. BofA Raises PT to $55
• Positive Sentiment: Jefferies and several bullish write-ups argue the post-earnings pullback is a buying opportunity, with Jefferies citing ~13% upside from current levels. Should You Buy the Dip?
• Neutral Sentiment: Q1 results were essentially in-line: EPS $0.30, revenue ~$2.20B and daily sales growth from contracts/pricing — positive operational signals but no surprise to lift sentiment. Q1 Results In-Line
• Neutral Sentiment: Management hosted an earnings call/slide deck that reiterated growth drivers but flagged cost pressures; full transcript and highlights are available for detail. Earnings Call Transcript
• Negative Sentiment: Executives warned tariffs, higher energy/transport costs and a lag between supplier price inflation and customer pricing are squeezing gross margins — a primary reason the stock fell after the report. Pricing Challenges from Oil/Tariffs
• Negative Sentiment: Company flagged a heavier 2026 capital spend target (~$310–$330M / reports as ~$320M), and said Q2 could be challenging — investors worry near-term profitability may be pressured. Q2 Outlook & CapEx
• Negative Sentiment: Wolfe Research cut its price target to $45 and maintained an “underperform” rating; several market pieces noted the post-earnings sell-off and margin-driven downside risk. Wolfe Lowers PT to $45

Analysts Set New Price Targets

FAST has been the topic of a number of research analyst reports. Bank of America boosted their target price on Fastenal from $48.00 to $55.00 in a research report on Monday. Morgan Stanley reiterated a “positive” rating and set a $45.00 target price on shares of Fastenal in a research report on Thursday, March 5th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Fastenal in a research report on Friday, March 27th. UBS Group reiterated a “neutral” rating and set a $46.00 target price on shares of Fastenal in a research report on Wednesday, January 21st. Finally, Benchmark reiterated a “buy” rating on shares of Fastenal in a research report on Thursday, March 5th. Five investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $49.69.

Insider Buying and Selling at Fastenal

In other news, Director Scott Satterlee sold 15,964 shares of the company’s stock in a transaction on Friday, January 23rd. The stock was sold at an average price of $44.19, for a total value of $705,449.16. Following the sale, the director directly owned 50,000 shares in the company, valued at $2,209,500. This represents a 24.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Reyne K. Wisecup sold 36,920 shares of the company’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $47.34, for a total value of $1,747,792.80. Following the completion of the sale, the director owned 40,000 shares in the company, valued at $1,893,600. This represents a 48.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.28% of the stock is owned by corporate insiders.

Institutional Trading of Fastenal

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new position in Fastenal in the third quarter valued at $36,000. Greenline Wealth Management LLC acquired a new position in Fastenal in the fourth quarter valued at $42,000. DV Equities LLC acquired a new position in Fastenal in the fourth quarter valued at $65,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its stake in Fastenal by 33.6% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,470 shares of the company’s stock valued at $72,000 after purchasing an additional 370 shares during the last quarter. Finally, Kelleher Financial Advisors acquired a new position in Fastenal in the third quarter valued at $94,000. 81.38% of the stock is owned by hedge funds and other institutional investors.

About Fastenal

Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.

Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.