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Dec 31, 2020
Fastenal Q4 2020 Earnings Report
Reported annual and fourth quarter earnings.
Key Takeaways
Fastenal Company reported a 6.4% increase in net sales for the fourth quarter of 2020 compared to the fourth quarter of 2019, driven by higher unit sales of safety and janitorial products. Diluted net earnings per share increased by 9.6% to $0.34.
Net sales increased by 6.4% due to higher unit sales of safety and janitorial products.
Daily sales of fastener products declined by 2.3%, while safety products grew by 34.6%.
Gross profit margin declined by 130 basis points to 45.6%, primarily due to lower product margins in the safety product line and changes in product and customer mix.
Operating income margin increased to 19.5% from 18.7% due to leveraged employee, occupancy, and general corporate expenses.
Fastenal
Fastenal
Fastenal Revenue by Segment
Revenue by Segment
Fastener products Revenue
CapyFin.com Forward Guidance
Fastenal anticipates weighted FMI device signings to be in a range of 23,000 to 25,000 MEUs in 2021. The goal for Onsite signings in 2021 is 375 to 400. Net capital expenditures in 2021 to be within a range of $170.0 to $200.0.
Positive Outlook
- Weighted FMI device signings are anticipated to be in a range of 23,000 to 25,000 MEUs in 2021, compared to actual signings of 15,724 in 2020 and 20,593 in 2019.
- The goal for Onsite signings in 2021 is 375 to 400.
- Net capital expenditures in 2021 are expected to be within a range of $170.0 to $200.0.
- Strong collections at year end mitigating the rate of growth.
- Internal initiatives to streamline inventory levels.
Challenges Ahead
- Achieving the Onsite signings range will likely require some normalization in the business environment that allows customers to prioritize long-term strategic decision-making over short-term crisis management.
- Softer demand on our customers' working capital needs.
- Lower Onsite and vending signings.
- Deferral of payroll taxes resulting from the CARES Act.
- Higher maintenance spending across most tracked categories following tighter spending control in 2020.