Why Industrial And Construction Supplies Distributor Fastenal's Shares Are Down Today
Portfolio Pulse from Lekha Gupta
Fastenal Company (NASDAQ:FAST) shares dropped after reporting Q1 FY24 sales of $1.895 billion, missing consensus estimates of $1.914 billion. The company saw a slight increase in net daily sales and unit sales, primarily from growth with larger customers and Onsite locations. Despite a rise in digital sales, the gross margin slightly contracted, and operating income decreased. EPS was $0.52, below the expected $0.53. Operating cash flow also fell by 13.6% Y/Y. Fastenal declared a dividend of $0.39 per share. The company's outlook for 2024 remains unchanged, expecting Onsite signings and device signings within previously stated ranges. FAST shares are down 4.47% in premarket trading. Investors can also gain exposure to Fastenal through Motley Fool Mid-Cap Growth ETF (BATS:TMFM) and iShares U.S. Basic Materials ETF (NYSE:IYM).
April 11, 2024 | 12:41 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Fastenal's Q1 FY24 earnings miss and lower operating cash flow led to a premarket stock price drop of 4.47%.
The earnings miss and lower operating cash flow directly impact investor sentiment and stock price, leading to a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
IYM ETF, holding Fastenal among its assets, might see a slight indirect impact from Fastenal's Q1 performance.
Given its exposure to Fastenal, IYM might face indirect impacts. However, the diversified nature of ETFs likely softens any negative effects.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
TMFM ETF, which includes Fastenal in its holdings, may see indirect impact due to Fastenal's Q1 earnings miss.
As an ETF holding Fastenal, TMFM may experience indirect effects, but diversified holdings mitigate significant impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50