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Investors in Fastenal Company (NASDAQ:FAST) had a good week, as its shares rose 4.4% to close at US$76.08 following the release of its annual results. Results were roughly in line with estimates, with revenues of US$7.5b and statutory earnings per share of US$2.00. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Fastenal
Taking into account the latest results, the most recent consensus for Fastenal from 14 analysts is for revenues of US$8.06b in 2025. If met, it would imply a reasonable 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.0% to US$2.17. Before this earnings report, the analysts had been forecasting revenues of US$8.11b and earnings per share (EPS) of US$2.19 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$75.25, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Fastenal at US$88.00 per share, while the most bearish prices it at US$54.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.9% growth on an annualised basis. That is in line with its 8.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.5% annually. So although Fastenal is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$75.25, with the latest estimates not enough to have an impact on their price targets.