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Dec 31, 2021
Fastenal Q4 2021 Earnings Report
Fastenal's Q4 2021 earnings were reported, revealing a strong growth driven by demand in manufacturing and construction, with daily sales up by 14.6%.
Key Takeaways
Fastenal Company reported a strong fourth quarter in 2021, with net sales increasing by 12.8% and diluted net earnings per share rising by 17.6% compared to the same period in 2020. The company benefited from strong demand in the manufacturing and construction sectors, although pandemic-related effects moderated during the quarter.
Net sales increased by 12.8% compared to Q4 2020, driven by strong demand in manufacturing and construction.
Daily sales growth increased by 14.6% compared to Q4 2020, reflecting strong economic activity and fewer holiday-related shutdowns.
Diluted net earnings per share increased by 17.6% to $0.40, up from $0.34 in Q4 2020.
Gross profit margin increased by 90 basis points to 46.5%, driven by improved product margins and overhead absorption.
Revenue by Geographic Location
Forward Guidance
The company expects investment in property and equipment for 2022 to be $180.0 to $200.0 million. Goal for weighted FASTBin and FASTVend device signings in 2022 is 23,000 to 25,000 MEUs. The company continues to believe the market will support a long-term rate of 375 to 400 annual Onsite signings, and this represents our goal for Onsite signings in 2022.
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 as well as facilities upgrades.
- Increase in manufacturing capacity to support demand and expand capabilities.
- Company expects investment in property and equipment, net of proceeds of sales, in 2022 to be $180.0 to $200.0.
- Goal for weighted FASTBin and FASTVend device signings in 2022 is 23,000 to 25,000 MEUs.
Challenges Ahead
- Inflation
- Supply chain constraints
- Labor shortages
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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