Fastenal Company (NASDAQ:FAST) Posts Solid Results

Fastenal Company (NASDAQ:FAST) stock fell 0.069% (As on Jan 20, 11:27:51 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. There was one fewer selling day in the quarter relative to the year earlier period, and taking this into consideration our net daily sales growth increased 14.6% in the fourth quarter of 2021 when compared to the fourth quarter of 2020. The fourth quarter of 2021 continued to experience strong, economically-driven growth in underlying demand for manufacturing and construction equipment and supplies, which drove higher unit sales that contributed to the increase in net sales in the period. This strength was aided by fewer holiday-related customer facility shut-downs than the company typically experience. The net earnings during the fourth quarter of 2021 were $231.2, an increase of 17.9% compared to the fourth quarter of 2020. The company produced operating cash flow of $770.1 in 2021, a decrease of 30.1% from 2020, representing 83.3% of the period’s net earnings versus 128.3% in 2020. The investment in property and equipment, net of proceeds from sales, was $148.2 in 2021 compared to $157.5 in 2020. Total debt on our balance sheet was $390.0 at the end of 2021, or 11.4% of total capital (the sum of stockholders’ equity and total debt). This compares to $405.0, or 12.9% of total capital, at the end of 2020.

FAST in the fourth quarter of FY 21 has reported the adjusted earnings per share of 40 cents, beating the analysts’ estimates for the adjusted earnings per share of 37 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 12.8 percent to $1.53 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.51 billion. The gross profit, as a percentage of net sales, increased 90 basis points to 46.5% in the fourth quarter of 2021 from 45.6% in the fourth quarter of 2020. The operating income, as a percentage of net sales, increased slightly to 19.6% in the fourth quarter of 2021 from 19.5% in the fourth quarter of 2020. The increase in the operating income percentage in the fourth quarter of 2021 was due to the 90 basis point increase in the gross profit, as a percentage of net sales, partly offset by an 80 basis point increase in the operating and administrative expenses, as a percentage of net sales, to 26.9% in the fourth quarter of 2021 from 26.1% in the fourth quarter of 2020.

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