According to Fastenal Company’s FAST recently released November 2024 sales report, its average daily sales (ADR) increased 3.4% on a year-over-year basis to $29.5 million but declined 1.9% from October. Last month’s daily sales rose 2.8% to $30.1 million on a year-over-year basis but declined 3.4% sequentially.
The sequential change in daily sales ranges above the historical November daily sales growth average of down 3.1% between 2018 and 2023 (excluding 2020).
Net sales in November were $590.8 million, reflecting a contraction of 1.5% year over year, weakened by one less business day. Sluggish end-market trends across Non-Residential Construction and Reseller, partially offset by strong demand trends across Manufacturing, have driven the month’s numbers.
FAST stock inched down 0.5% during Thursday’s trading hours.
FAST’s November Sales Numbers in Details
End-market-wise, total manufacturing (which accounted for 74.6% of November 2024 sales), comprises Heavy Manufacturing and Other Manufacturing. On a year-over-year basis, daily sales in Heavy Manufacturing and Other Manufacturing improved 4.1% and 7.1%, respectively, with total manufacturing registering 11.2% growth during the month compared with 8.7% reported a year ago. On the other hand, Non-Residential Construction and Reseller dropped 1.7% and 15.1%, respectively, compared with the 8.2% and 4.6% decreases reported in November 2023.
Based on the product lines, daily sales growth during the month for Fasteners (29.8% of November 2024 sales) was 0.1% against a 3% decline registered a year ago. Daily sales growth across Safety (23.2% of November 2024 sales) and Other product (47% of November 2024 sales) categories was 5.5% and 5.2%, respectively, compared with last year November’s figures of 10.8% and 5.8%.
Geographically, daily sales were up in Canada/Mexico by 8.7% (compared with 8.6% a year ago) and the United States by 2.3% (compared with 3.1% a year ago). Rest of World sales grew 6.4% compared with 2.3% growth registered in the year-ago period.
Per customer/channel type, National account daily sales advanced 6% in November from a year ago, given the fact that 59% of the top 100 accounts and 49.3% of public branches are expanding. Yet, non-national accounts showed a 1% decline year over year for the month. In the year-ago period, daily sales declined 3% in non-national accounts year over year.
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Shares of this wholesale distributor of industrial and construction supplies have gained 20% in the past three months against the Zacks Building Products - Retail industry’s 60.2% decline. Although sluggishness in certain end-markets of the company is concerning, its efforts of controlling costs, implementation of effective sales initiatives and prospects in the manufacturing and construction markets are expected to foster the uptrend.
Fastenal’s Zacks Rank and Key Picks
Fastenal currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Deckers Outdoor Corporation DECK currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DECK has a trailing four-quarter earnings surprise of 41.1%, on average. The stock has gained 15.5% in the past six months. The Zacks Consensus Estimate for DECK’s fiscal 2025 sales and earnings per share (EPS) indicates growth of 13.6% and 12.8%, respectively, from the year-ago period’s levels.
Brinker International, Inc. EAT presently sports a Zacks Rank of 1. EAT has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has risen 89.7% in the past six months.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 7.9% and 34.6%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. SFM currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 15.3%, on average. The stock has surged 97% in the past six months.
The Zacks Consensus Estimate for SFM’s 2025 sales and EPS indicates a rise of 10% and 14.4%, respectively, from the year-ago period’s levels.
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Fastenal Company (FAST) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
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