Fastenal Faces Headwinds: Q4 Figures Disappoint Analysts

Fastenal shares stumbled in pre-market trading on Friday after fourth-quarter results fell short of analysts' expectations. The industrial supplies company reported a net income of $262.1 million, or $0.46 per share, on revenue of $1.82 billion. These figures were all below the consensus estimates compiled by Visible Alpha. Although sales increased by 3.7 percent compared to the previous year, after adjusting for an additional sales day in 2023, the growth in daily sales was only 2.1 percent. Profit shrank by 1.6 percent. Fastenal attributed the slow sales growth to a persistent "weak production environment" in 2024. Additionally, many customers made unusually drastic production cuts in December as factories shut down over the holidays. Exchange rates also had a negative impact compared to the previous year. Less than an hour before the opening bell, Fastenal shares were down by almost 5 percent. However, by the close of trading on Thursday, they had gained about 18 percent over the past year.