Investing.com | Editor Pollock Mondal
Published Oct 16, 2023 07:56AM ET
Fastenal Company (NASDAQ:FAST) reported a 4% daily sales growth rate and an earnings per share (EPS) of $0.52, marking a 4.1% increase year-on-year (YoY), in its Q3 2023 earnings call. Despite having one less selling day in the quarter, the company managed to maintain its operating margin at 21%. Fastenal also announced leadership changes, including the promotion of Tony Broersma to Executive Vice President over operations and the departure of Chief Operations Officer Terry Owen.
Key takeaways from the call:
During the call, Fastenal highlighted its success in expanding its Onsite and FMI installed bases and its digital footprint. The company plans to sign approximately 350 Onsites and achieve a 60% digital engagement rate by the end of the year.
In terms of leadership changes, Tony Broersma, a veteran with the organization for approximately 20 years, has been elevated to Executive Vice President over operations. Terry Owen, the Chief Operations Officer, who has been with the company for about 28 years, has decided to leave the organization to pursue other opportunities.
Fastenal's representative, Holden Lewis, discussed the company's capital expenditures (CapEx), stating that the majority of project delays were not elective and were due to supply chain challenges and timing. He expressed the company's commitment to these projects, expecting their completion in 2024. Lewis also mentioned that pricing in non-fastener products has moderated but remains positive and stable.
Fastenal executives also commented on the company's occupancy growth and expenses, expressing confidence in their ability to manage occupancy growth. They discussed a program called Lyft (NASDAQ:LYFT), focusing on the efficiency of picking products to replenish vending machines. The executives also noted that while MRO fasteners were down, OEM fasteners were still rising, benefiting from growth in the Onsite business. However, the growth in OEM fasteners has moderated due to a softening production environment.
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Written By: Investing.com
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