Fastenal Company (NASDAQ:FAST) stock gained 7.2% on Thursday and hit a new 52-week high of $68.69, following the release of the company’s fourth-quarter results. The revenues and earnings surpassed analysts’ expectations and improved year-over-year. The increase is attributed to the expansion of its onsite locations, where the company delivers sales and services directly within or near a customer facility.
FAST is an industrial supply company known for providing fasteners, tools, and other maintenance, repair, and operations (MRO) products to businesses.
Q4 Earnings
Fastenal reported net earnings of $0.46 per share in Q4, up 8.4% year-over-year and ahead of the consensus estimate of $0.45. Meanwhile, net sales increased 3.7% to $1.76 billion and marginally surpassed the Street’s expectations of $1.75 billion.
The company’s network expanded by 12.3% year-over-year, reaching 1,822 active locations by December 31, 2023, owing to the addition of 58 new sites in the quarter. With the growth in these locations, FAST witnessed higher unit sales and attracted more large customers.
It is worth mentioning that Fastenal raised its dividend for the first quarter of 2024 to $0.39 per share from $0.38. The dividend is payable to shareholders of record at the close of business on February 1, 2024.
Is Fast Stock a Good Buy?
Following the earnings release, Stephens analyst Tommy Moll raised the price target on Fastenal to $63 (7.3% downside potential) from $60 and reiterated a Hold rating.
Overall, Wall Street analysts are currently sidelined on FAST stock with a Hold consensus rating based on one Buy and three Holds assigned in the past three months. The average price target of $63.50 per share implies a 6.5% downside potential. Shares have gained 49.9% in the past year.
