Fastenal Co. (NASDAQ:FAST) slid in pre-market trading after the industrial distributor announced its Q1 results. FAST’s earnings in Q1 remained unchanged year-over-year at $0.52 per diluted share, falling short of consensus estimates of $0.53 per share. The company’s management stated that its earnings were affected by adverse weather and poor demand for its products.
The company posted net revenues of $1.89 billion, an increase of 1.9% year-over-year. These sales were in line with analysts’ expectations of $1.9 billion. Interestingly, the company did experience a decelaration of growth in the sales of industrial fasteners. Fastenal sells its products in three categories, including industrial fasteners, safety supplies and other product lines.
In the first quarter, fastener sales made up 31.5% of its total sales. However, there was a 4.4% slowdown in its daily sales rate (DSR) due to declining industrial production. The daily sales rate refers to the average daily sales of fasteners throughout the quarter.
Is FAST a Good Stock to Buy?
Analysts remain sidelined about FAST stock, with a Hold consensus rating based on two Buys, five Holds, and one Sell. Over the past year, FAST has increased by more than 45%, and the average FAST price target of $72.86 implies a downside potential of 2.5% at current levels.
