Fastenal Q2 2022 Earnings Report
Key Takeaways
Fastenal Company reported an 18.0% increase in net sales for the second quarter of 2022 compared to the same period in 2021. Daily sales also increased by 18.0%. Diluted net earnings per share increased to $0.50 from $0.42 in the prior year. The company's growth was fueled by strong demand in manufacturing and construction, as well as strategic pricing actions.
Net sales increased by 18.0% compared to the second quarter of 2021.
Diluted net earnings per share increased to $0.50 from $0.42 in the prior year.
Daily sales to manufacturing customers increased by 23.1%, while sales to non-residential construction customers increased by 10.8%.
The Digital Footprint represented 47.9% of sales, an increase from 41.4% in the second quarter of 2021.
Fastenal
Fastenal
Forward Guidance
The company expects its investment in property and equipment to be within a range of $180.0 to $200.0 million for 2022. The company expects 2022 signings goal for weighted FASTBin and FASTVend devices to be 21,000 to 23,000 MEUs.
Positive Outlook
- Increase in spending on FMI equipment in anticipation of higher signings.
- Increase in spending on hub properties to reflect upgrades to and investments in automation.
- Increase in facilities upgrades.
- Increase in manufacturing capacity to support demand.
- Increase in manufacturing capacity to expand capabilities.
Challenges Ahead
- Unspecified risks related to inflation.
- Unspecified risks related to supply chain constraints.
- Unspecified risks related to labor shortages.
- Unspecified risks related to the COVID-19 pandemic.
- Signings of FMI devices in the second quarter and year-to-date 2022 have improved slightly on a sequential basis, but at a slower pace than is necessary to achieve our annual goals.