Fastenal Company stock research
FY2023 Q3
Fastenal (FAST) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was slightly lower than the prior quarter, while gross profit and cost of revenue also decreased modestly, resulting in a slightly improved gross margin. Compared to the same quarter last year, revenue was unchanged, gross profit was higher, cost of revenue was higher, and gross margin remained stable.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was slightly lower than the prior quarter, while gross profit and cost of revenue also decreased modestly, resulting in a slightly improved gross margin. Compared to the same quarter last year, revenue was unchanged, gross profit was higher, cost of revenue was higher, and gross margin remained stable.
- The most observable driver was the slight improvement in gross margin from the prior quarter, with the margin staying at the same level as the year-ago period.
- Sequentially, gross margin improved as the decline in revenue was accompanied by a proportionally smaller decline in cost of revenue. Year-over-year, gross margin was unchanged despite higher revenue and higher cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.9%
Gross profit
$847.6M
Revenue
$1.8B
Cost of revenue
$998.3M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.1 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% |
| Jun 30, 2023 | $1.9B | $857.5M | $1.0B | 45.5% |
| Sep 30, 2023 | $1.8B | $847.6M | $998.3M | 45.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.4 pts
Year-over-year change
Sep 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the slight improvement in gross margin from the prior quarter, with the margin staying at the same level as the year-ago period.
Sequentially, gross margin improved as the decline in revenue was accompanied by a proportionally smaller decline in cost of revenue. Year-over-year, gross margin was unchanged despite higher revenue and higher cost of revenue.
Monitor the relationship between revenue and cost of revenue to see if the slight sequential margin improvement can be sustained.