Fastenal Company (NASDAQ:FAST) released its fourth-quarter results that missed market expectations. The industrial and construction supplies distributor struggled with weaker-than-anticipated growth amid a challenging manufacturing landscape.
The company reported earnings per share of $0.46, falling below the consensus estimate of $0.48. Revenue for the quarter totaled $1.82 billion, missing the expected $1.84 billion. Year-over-year, net sales grew by 3.7%, but daily sales growth slowed to 2.1% from 2.3% in the prior quarter, underscoring the continued softness in the manufacturing sector throughout 2024.
Fastenal noted that the modest growth was further hindered by sharp production cuts among many of its largest customers during the final two weeks of December, coinciding with holiday-related plant shutdowns. The company highlighted that these reductions exacerbated the already subdued demand environment.
The company’s gross profit margin also faced pressure, declining to 44.8% from 45.5% in the same period last year. Contributing factors included an unfavorable mix of customers and products, along with elevated freight and import duty costs.
In terms of expansion, Fastenal signed 56 new Onsite locations in the fourth quarter, bringing its full-year total to 358—falling short of its target range of 375 to 400 new locations.