Fastenal Company stock research
FY2023 Q1
Fastenal (FAST) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit also rose, but gross margin improved sequentially while weakening year-over-year, reflecting a shift in the balance between cost of revenue and gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit also rose, but gross margin improved sequentially while weakening year-over-year, reflecting a shift in the balance between cost of revenue and gross profit.
- The sequential improvement in gross margin was the strongest observable driver, as gross profit grew at a faster rate than cost of revenue compared to the preceding quarter.
- Compared to the prior quarter, gross margin improved. Relative to the same quarter one year earlier, gross margin weakened, as cost of revenue increased more rapidly than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.7%
Gross profit
$850.0M
Revenue
$1.9B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
-0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.9B | $850.0M | $1.0B | 45.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, as gross profit grew at a faster rate than cost of revenue compared to the preceding quarter.
Compared to the prior quarter, gross margin improved. Relative to the same quarter one year earlier, gross margin weakened, as cost of revenue increased more rapidly than gross profit.
Monitor the trajectory of cost of revenue relative to revenue, particularly given the company's discussion of supply chain normalization.