Fastenal (FAST) Down 3.5% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Fastenal (FAST). Shares have lost about 3.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Fastenal due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Fastenal’s Q3 Earnings & Sales Miss, Margins Up Y/YFastenal reported lower-than-expected third-quarter 2025 results, wherein earnings per share (EPS) and net sales missed the Zacks Consensus Estimate. However, on a year-over-year basis, both metrics grew.The year-over-year growth in the performance was attributable to improved customer contract signings despite sluggish industrial production activity, alongside favorable foreign exchange rates.Moreover, the benefits realized from the fastener expansion project and other supplier-focused initiatives, accompanied by improvements in customer and supplier incentives, aided the bottom-line growth and margin expansion.Fastenal’s Q3 Earnings & Sales in DetailThe company reported EPS of 29 cents, which missed the Zacks Consensus Estimate by 3.3%. In the year-ago quarter, FAST reported an EPS of 26 cents.Net sales totaled $2.13 billion, slightly missing the consensus mark of $2.14 billion by 0.5%, but increasing 11.7% from the year-ago level.Daily sales of $33.3 million increased 11.7% year over year in the quarter. Foreign exchange rates positively impacted sales by 10 basis points (bps) against a 10-bps negative impact in the year-ago quarter.Unit sales growth in the quarter was driven by an increase in the number of customer sites spending $10K or more per month with Fastenal and, to a lesser degree, by growth in average monthly sales per customer site across all customer spend categories.Daily sales of Fasteners (mainly used for industrial production and accounting for approximately 31% of net sales) increased 14.4% year over year. Sales of Safety Supplies (22.1%) grew 9.8% daily. Sales of the Other Product Lines (46.9%) also increased 10.7% year over year.On an end-market basis, the daily sales rate of Heavy Manufacturing (which accounted for approximately 43.1% of net sales) rose 12.4% year over year. The daily sales rate of Other Manufacturing (32.8%) grew 12.9% compared with the prior year.Furthermore, the daily sales of Non-Residential Construction grew 7.5% compared with the prior-year quarter, while the same for Other End-Markets grew 8.9% in the same time frame.Daily sales through weighted FMI devices grew 17.7% for the third quarter, representing 45.3% of net sales. Daily sales through eBusiness were up 8%, accounting for 29.1% of total net sales.The company’s sales through Digital Footprint increased to 61.3% of net sales from 61.1% in the year-ago period.Margin Discussion of FASTThe gross margin was 45.3% in the reported quarter, up 40 bps year over year. This upside was due to improvements in customer and supplier incentives and benefits from the fastener expansion project.Selling, general and administrative expenses – as a percentage of net sales – remained flat year over year at 24.6%. During the quarter, Fastenal witnessed an increase in employee-related and occupancy-related expenses. Operating margin was 20.7%, up from 20.3% a year ago.FAST’s FinancialsAs of Sept. 30, 2025, Fastenal had cash and cash equivalents of $288.1 million, up from $255.8 million as of Dec. 31, 2024. The long-term debt as of the third quarter was $100 million, down from $125 million as of 2024-end.During the first nine months of 2025, Fastenal returned $751.6 million to its shareholders in the form of dividends.In the first nine months of 2025, net cash provided by operating activities totaled $927.8 million, up from the year-ago period’s reported value of $890.5 million.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.VGM ScoresAt this time, Fastenal has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fastenal has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks