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Fastenal Co FAST

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Fastenal Reports Solid Second Quarter as Manufacturing End Markets Rebound

Analyst Note

| Brian Bernard, CFA, CPA |

While Fastenal's top and bottom lines were unchanged from the year-ago period, we thought the wide-moat-rated industrial distributor's second-quarter results were solid. A strong rebound in fasteners and other nonsafety product sales, which increased 28% and 13% year over year, respectively, was offset by a 39% decline in safety product revenue. We were expecting a drop in safety product sales given a tough prior-year sales comparison and the significant decrease in COVID-19 cases in the United States, and the decrease was similar to the 42% decline reported by fellow distributor MSC Industrial for its most recent quarter. Still, Fastenal's $1.5 billion of sales was 10% higher than the second quarter of 2019, which tells us the company's traditional end markets are recovering while pandemic-related sales continue, albeit at more moderate levels.

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Company Profile

Business Description

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,900 branches, over 1,300 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.

Contact
2001 Theurer Boulevard
Winona, MN, 55987-1500
T +1 507 454-5374
Sector Industrials
Industry Industrial Distribution
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 20,317

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