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Jun 30, 2022
Fastenal Q2 2022 Earnings Report
Fastenal's Q2 2022 earnings were reported, showcasing growth driven by strong demand in manufacturing and construction, along with effective pricing strategies.
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.