FA

Fastenal Company stock research

Mar 31, 2024

FY2024 Q1

Fastenal (FAST) Gross Margin — Quarter Ended Mar 31, 2024

Revenue increased compared to the prior quarter, with gross profit rising proportionally, resulting in a stable gross margin. Compared to the same quarter last year, revenue was similar while gross profit was marginally higher, leading to a slightly lower gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue increased compared to the prior quarter, with gross profit rising proportionally, resulting in a stable gross margin. Compared to the same quarter last year, revenue was similar while gross profit was marginally higher, leading to a slightly lower gross margin.

  • The gross margin remained unchanged from the prior quarter, indicating a consistent relationship between revenue and cost of revenue. The slight decline from the same quarter last year reflects a marginally higher cost proportion.
  • Compared to the immediately preceding quarter, revenue and gross profit both increased, while gross margin was stable. Versus the same quarter one year earlier, revenue was similar, gross profit slightly improved, but gross margin weakened marginally.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

45.5%

Gross profit

$861.6M

Revenue

$1.9B

Cost of revenue

$1.0B

Quarter-over-quarter change

+0.0 pts

Year-over-year change

-0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.9B$857.5M$1.0B45.5%
Sep 30, 2023$1.8B$847.6M$998.3M45.9%
Dec 31, 2023$1.8B$799.4M$959.2M45.5%
Mar 31, 2024$1.9B$861.6M$1.0B45.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+0.0 pts

Year-over-year change

Mar 31, 2023

-0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin remained unchanged from the prior quarter, indicating a consistent relationship between revenue and cost of revenue. The slight decline from the same quarter last year reflects a marginally higher cost proportion.

Compared to the immediately preceding quarter, revenue and gross profit both increased, while gross margin was stable. Versus the same quarter one year earlier, revenue was similar, gross profit slightly improved, but gross margin weakened marginally.

Monitor inventory levels, as the company noted a slower pace of inventory reduction, which could influence future cost of revenue and gross margin.

FAST Gross Margin — Quarter Ended Mar 31, 2024