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Mar 31, 2023
Fastenal Q1 2023 Earnings Report
Fastenal's financial performance increased in the first quarter of 2023, with sales and earnings growth driven by strong demand in industrial markets, partially offset by a contraction in construction supplies.
Key Takeaways
Fastenal Company reported a 9.1% increase in net sales to $1,859.1 million and a 9.5% increase in net earnings to $295.1 million for the first quarter of 2023. Diluted net earnings per share increased to $0.52 from $0.47 in the same period last year. The growth was driven by higher unit sales due to strong demand in industrial capital goods and commodities, although foreign exchange and adverse weather had negative impacts.
Net sales increased by 9.1% to $1,859.1 million, driven by higher unit sales in markets tied to industrial capital goods and commodities.
Diluted net earnings per share rose to $0.52, a 10.4% increase compared to $0.47 in the first quarter of 2022.
The company signed 89 new Onsite locations, bringing the total to 1,674 active sites, with daily sales through Onsite locations growing roughly 20%.
Daily sales through eCommerce grew 48.7% and represented 21.9% of total sales, while the Digital Footprint reached 54.1% of sales, up from 47.0% in the prior year.
Fastenal
Fastenal
Forward Guidance
Fastenal expects to continue growing its business through Onsite locations and FMI technology. They anticipate capital expenditures to be between $210.0 to $230.0 million for 2023.
Positive Outlook
- Goal for Onsite signings in 2023 remains between 375 to 400.
- Goal for weighted FASTBin and FASTVend device signings in 2023 remains between 23,000 to 25,000 MEUs.
- Expect investment in property and equipment to be within a range of $210.0 to $230.0 million in 2023.
- Ongoing tax rate, absent any discrete tax items or broader changes to tax law, will be approximately 24.5%.
- Continue to open or close locations as is deemed necessary to sustain and improve our network, support our growth drivers, and manage our operating expenses.
Challenges Ahead
- No specific negative guidance was provided in the document.
- No specific negative guidance was provided in the document.
- No specific negative guidance was provided in the document.
- No specific negative guidance was provided in the document.
- No specific negative guidance was provided in the document.