Here's What Analysts Are Forecasting For Fastenal Company (NASDAQ:FAST) After Its Second-Quarter Results

It's been a good week for Fastenal Company (NASDAQ:FAST) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to US$67.89. It was a credible result overall, with revenues of US$1.9b and statutory earnings per share of US$0.51 both in line with analyst estimates, showing that Fastenal is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Fastenal

Following the latest results, Fastenal's 13 analysts are now forecasting revenues of US$7.60b in 2024. This would be a credible 2.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.05, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.62b and earnings per share (EPS) of US$2.05 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$63.54, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Fastenal at US$80.00 per share, while the most bearish prices it at US$51.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fastenal's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fastenal's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% annually. Factoring in the forecast slowdown in growth, it looks like Fastenal is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Fastenal going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Fastenal Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com