In This Article:
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Revenue Growth: Fourth quarter sales increased by 3.7%, with daily sales up 2.1%.
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Earnings Per Share (EPS): EPS for Q4 2024 was $0.46, flat compared to Q4 2023.
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Gross Margin: Q4 2024 gross margin was 44.8%, down 70 basis points from the previous year.
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Operating Margin: Operating margin for Q4 2024 was 18.9%, down 120 basis points year-over-year.
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Cash Flow: Generated $282.8 million in operating cash in Q4 2024, representing 108% of net income.
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Dividend Increase: Quarterly dividend raised by approximately 10%, annualized to $1.72.
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Inventory Levels: Inventories increased by 8% year-over-year.
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Accounts Receivable: Increased by 1.9%, driven by sales growth.
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Capital Expenditure: Net capital spending in 2024 was $214 million, with a projection of $265 million to $285 million for 2025.
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eCommerce Growth: eCommerce grew by 28%, with eProcurement up 37.6%.
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Onsite Locations: Signed 56 Onsite locations in Q4, totaling 2,031 by year-end, a 12% increase from the previous year.
Release Date: January 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fastenal Co (NASDAQ:FAST) reported a 3.7% growth in sales for the fourth quarter of 2024, indicating resilience in a challenging market environment.
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The company increased its quarterly dividend by approximately 10%, reflecting confidence in its cash flow generation and financial stability.
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Fastenal Co (NASDAQ:FAST) has successfully expanded its Onsite program, with 2,031 Onsite locations contributing to over 40% of its revenue.
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The company achieved a significant milestone with its Industrial Services division, surpassing $100 million in revenue for the first time in 2024.
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Fastenal Co (NASDAQ:FAST) continues to enhance its digital footprint, with eBusiness and FMI Technology touching 62% of its sales, aiming for 66% to 68% in 2025.
Negative Points
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The company's earnings per share (EPS) for the fourth quarter of 2024 were flat at $0.46, indicating a lack of growth compared to the previous year.
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Fastenal Co (NASDAQ:FAST) experienced a decline in gross margin by 70 basis points year-over-year, primarily due to product margin pressure and higher shipping costs.
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The company faced challenges in its eCommerce segment, particularly in the web component, which did not perform as strongly as expected.
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Operating margin in the fourth quarter of 2024 decreased by 120 basis points year-over-year, reflecting the impact of slow growth and seasonal shutdowns.
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Fastenal Co (NASDAQ:FAST) noted a significant increase in customer shutdowns during the holiday season, which negatively impacted sales in December.