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Investing.com -- On Friday, Fastenal Company (NASDAQ:FAST) reported first quarter earnings that met analyst expectations, while revenue came in slightly above estimates.
The industrial and construction supplies distributor saw its shares edge down 0.7% following the release.
Fastenal posted earnings per share of $0.52 in Q1, matching the consensus estimate. Revenue rose 3.4% year-over-year to $1.96 billion, narrowly beating expectations of $1.95 billion.
The company's daily sales increased 5.0% compared to Q1 2024, helped by the absence of Good Friday in March 2025. Fastenal said this growth was driven by improved customer contract signings over the past year, partially offset by sluggish underlying business activity.
"We experienced an increase in unit sales in the first quarter of 2025. This was due to a growth in the number of customer sites spending $10K or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer spend categories," the company stated.
Fastenal's gross profit margin declined to 45.1% from 45.5% a year ago, primarily due to customer and product mix as well as higher fleet and transportation costs.
The company maintained its 2025 outlook for capital expenditures of $265 million to $285 million, up from $214.1 million in 2024. Fastenal cited increased spending on distribution centers, IT projects, and FMI hardware to support growth.
Fastenal continues to see growth from its larger customers while facing some headwinds from sluggish industrial activity.