Fastenal Co (NASDAQ:FAST) stock rose 2.22% (As on January 20, 11:10:55 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Operating margin in the fourth quarter of 2022 was 19.6%, flat from the prior year. The company continues to manage operating expenses effectively, producing 120 basis points of SG&A leverage in the fourth quarter of 2022. Occupancy costs are being restrained from strategic branch closures, while initiatives such as digital footprint, LIFT and the changes the company has made to the brand strategies are contributing to improved labor leverage, which accelerated in 2022. The company has generated $302 million in operating cash in the fourth quarter of 2022 or approximately 123% of net income in the period. Year-over-year, accounts receivable was up 12.6% on higher customer demand and an increase in the mix of larger key account customers, which tend to have longer terms. Inventories rose 12.1%. The supply chain has largely normalized. Inflation is moderating. Net capital spending in 2022 was $162.4 million, a bit below the USD170 million to USD190 million anticipated at the end of the third quarter, mostly related to project and equipment deferrals. The company has finished the fourth quarter of 2022 with debt at 14.9% of total capital, up from 11.4% in the fourth quarter of 2021 and unchanged at 14.9% in the third quarter of 2022.

FAST in the fourth quarter of FY 22 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share of 42 cents, according to the Zacks Consensus Estimate . The company had reported the adjusted revenue growth of 10.7 percent to $1.7 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 1.23%. The company has  experienced higher unit sales in the fourth quarter of 2022 that contributed to the increase in net sales in the period. This was due to further growth in underlying demand in markets tied to industrial capital goods and commodities, which more than offset softer markets tied to consumer goods and relatively lower growth in construction. Foreign exchange negatively affected sales in the fourth quarter of 2022 by approximately 90 basis points. The net earnings during the fourth quarter of 2022 were $245.6, an increase of 6.2% compared to the fourth quarter of 2021. The company has signed 62 new Onsite locations in the fourth quarter of 2022, resulting in full-year signings of new Onsite locations of 356.