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Winona, Minnesota-based Fastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies. Valued at $41 billion by market cap, the company offers fasteners, cutting tools, metal working, lifting, hardware, plumbing, lubricant, and other related products. The leading distributor of industrial and construction supplies is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Friday, Oct. 11.
Ahead of the event, analysts expect FAST to report a profit of $0.52 per share on a diluted basis, flat from the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect FAST to report EPS of $2.04, up 1% from $2.02 in fiscal 2023. Looking ahead, analysts expect its EPS to rise 6.9% annually to $2.18 in fiscal 2025.
FAST stock has underperformed the S&P 500’s ($SPX) 34.2% gains over the past 52 weeks, with shares up 29.9% during this period. Similarly, it underperformed the S&P 500 Industrial Sector SPDR’s (XLI) 32.9% gains over the same time frame.
Fastenal's performance lagged due to sluggish sales, industrial sector downturn, and weather-related challenges.
On Jul. 12, FAST shares closed up more than 1% after reporting its Q2 results. Its EPS of $0.51 met Wall Street expectations. The company’s revenue was $1.9 billion, matching Wall Street forecasts. FAST signed 107 new Onsite locations in Q2, resulting in 209 year-to-date signings of new Onsite locations.
Analysts’ consensus opinion on FAST stock is cautious, with a “Hold” rating overall. Out of 13 analysts covering the stock, two advise a “Strong Buy” rating, nine give a “Hold” rating, and two recommend a “Strong Sell.”
While the stock currently trades over its mean price target of $67.40, the Street-high target of $80 represents a potential upside of 11.9% from the current market prices.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
