Fastenal Co (NASDAQ:FAST) stock fell 4.93% (As on April 11, 11:26:03 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 24. The company has signed 102 new Onsite locations in the first quarter of 2024. The company had 1,872 active sites on March 31, 2024, which represented an increase of 11.8% from March 31, 2023. Daily sales through the Onsite locations, excluding sales transferred from branches to new Onsites, grew at a low single-digit rate in the first quarter of 2024 over the first quarter of 2023. This growth is due to contributions from Onsites activated and implemented in 2024 and 2023, as well as an increase in revenues per location among our more mature locations. These factors were only partly offset by Onsite closures. The goal for Onsite signings in 2024 remains between 375 to 400.

Moreover, the gross profit, as a percentage of net sales, decreased to 45.5% in the first quarter of 2024 from 45.7% in the first quarter of 2023. The gross profit percentage was negatively affected by customer and product mix. This reflects relatively stronger growth from large customers, including Onsite customers, and non-fastener products, each of which tend to have a lower gross profit percentage than our business as a whole. The company has reported net income during the first quarter of 2024 of $297.7, an increase of 0.9% compared to the first quarter of 2023.

FAST in the first quarter of FY 24 has reported the adjusted earnings per share of 52 cents, missing the analysts’ estimates for the adjusted earnings per share of 53 cents, according to LSEG data. The company had reported the adjusted revenue growth of 1.9 percent to $1.89 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue of $1.91 billion. The effect of adverse weather in the first quarter of 2024 was a reduction in sales by 35 to 55 basis points as compared to a reduction in sales in the first quarter of 2023 by 20 to 40 basis points, resulting in a net negative impact from adverse weather in the first quarter of 2024 of 10 to 30 basis points. The effect of foreign exchange on sales was not material in the first quarter of 2024 as compared to negatively affecting sales in the first quarter of 2023 by approximately 70 basis points.