Fastenal's (FAST) Average Daily Sales Rise 10.2% in November
Fastenal Company FAST recently released its November sales report, wherein average daily sales grew 10.2% to $27.5 million, moderating sequentially. In October 2022, daily sales registered 13.6% growth, whereas the same had witnessed 13.2% growth in November 2021.
Daily sales, on a constant currency basis, were up 11% last month compared with 14.7% in October 2022. Daily sales on a seasonal basis were down 4.3% compared with the company’s benchmark (historical five-year average) of down 3.7%, which is 60 basis points below the company’s historical seasonal benchmark.
November’s Hurricane Nicole, tepid international business (mainly due to the zero-COVID policy in China and a soft European market) and smaller customer spending impacted the company’s sales.
Shares of Fastenal lost 1.5% during the trading session on Dec 6, 2022.
End-Market Perspective, Product Lines & Customers
From an end-market perspective, manufacturing sales improved 15.3% for the month, reflecting a decline from 22.6% growth a year ago. Non-residential construction dropped 0.9% versus a 16.6% increase reported in November 2021. The average daily sales growth rate in non-residential and manufacturing end markets decelerated sequentially in November, respectively.
Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners witnessed 8.7% growth in sales last month versus 23.7% registered in the year-ago period. Safety products grew 9.6% in November 2022 compared with 0.4% in November 2021. In November 2022, Other categories improved 12% versus 11.7% a year ago.
Geographically, sales in the United States grew 10.5% (versus 12.8% a year ago), while Canada/Mexico grew 15.3% (versus 14.1%). Rest of World sales declined to 10.1% versus 17.9% growth registered in the year-ago period.
In terms of customer/channel, National account daily sales growth advanced 14% in November from a year ago, given the fact that 75% of the top 100 accounts and 62.1% of public branches are expanding. Yet, non-national accounts were up 6% year over year for the month. In the year-ago period, daily sales growth in non-national accounts was up 6% year over year.
Image Source: Zacks Investment Research
Shares of the company have outperformed the industry over the past year. Although daily sales have moderated sequentially because of a potentially slower macro environment, we believe this Zacks Rank #3 (Hold) company is well-positioned to navigate through these challenges, given cost-control efforts and focus on e-commerce business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Better-Ranked Retail-Wholesale Stocks Hogging the Limelight
Some better-ranked stocks which warrant a look in the Zacks Retail-Wholesale sector are Tecnoglass Inc. TGLS, Wingstop Inc. WING and Chipotle Mexican Grill, Inc. CMG.
Tecnoglass currently carries a Zacks Rank #1. Shares of the company have gained 16.4% year to date.
The Zacks Consensus Estimate for TGLS’ 2023 sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago period’s levels.
Wingstop currently sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have decreased 13.3% year to date.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18% and 16.2%, respectively, from the comparable year-ago period’s levels.
Chipotle currently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 4.1%, on average. The stock has declined 13.7% year to date.
The Zacks Consensus Estimate for Chipotle’s 2023 sales and EPS suggests growth of 13.4% and 27.9%, respectively, from the corresponding year-ago period’s levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fastenal Company (FAST) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Tecnoglass Inc. (TGLS) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
