Fastenal Q2 2023 Earnings Report
Key Takeaways
Fastenal Company reported a 5.9% increase in net sales for the second quarter of 2023, driven by growth in Onsite locations and FMI technology. Diluted net earnings per share increased to $0.52, and the company continues to invest in property, equipment, and digital capabilities.
Net sales increased by 5.9% compared to the second quarter of 2022, reaching $1,883.1 million.
Diluted net earnings per share rose to $0.52, up from $0.50 in the same period last year.
The company signed 86 new Onsite locations, bringing the total to 1,728 active sites, a 15.1% increase year-over-year.
Daily sales through eCommerce grew 44.7%, representing 23.3% of total sales.
Fastenal
Fastenal
Forward Guidance
Fastenal expects spending to trend toward the low end of the $210.0 to $230.0 million range for investment in property and equipment.
Positive Outlook
- Continued expansion of Onsite locations.
- Growth in sales through FMI Technology.
- Increase in eCommerce sales.
- Normalization of global supply chains.
- Improved operating cash flow.
Challenges Ahead
- Customer and product mix reduced gross profit percentage.
- Higher organizational/overhead costs due to inbound freight and working capital needs.
- Slower sales and profit growth impacting bonus and commission payments.
- Increased occupancy-related expenses.
- Uncertainty in the business environment.