Fastenal Company stock research
FY2024 Q2
Fastenal (FAST) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable while cost of revenue increased, causing gross profit to rise slightly but gross margin to weaken. Compared to both the preceding quarter and the same quarter a year earlier, gross margin was lower.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was stable while cost of revenue increased, causing gross profit to rise slightly but gross margin to weaken. Compared to both the preceding quarter and the same quarter a year earlier, gross margin was lower.
- The most observable margin driver was the increase in cost of revenue relative to revenue, which outpaced the growth in gross profit and compressed gross margin.
- Compared to the immediately preceding quarter, gross margin declined slightly as cost of revenue rose more than revenue. Versus the same quarter one year earlier, gross margin also weakened, with gross profit higher but cost of revenue rising at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.1%
Gross profit
$863.5M
Revenue
$1.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $1.8B | $847.6M | $998.3M | 45.9% |
| Dec 31, 2023 | $1.8B | $799.4M | $959.2M | 45.5% |
| Mar 31, 2024 | $1.9B | $861.6M | $1.0B | 45.5% |
| Jun 30, 2024 | $1.9B | $863.5M | $1.1B | 45.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.4 pts
Year-over-year change
Jun 30, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the increase in cost of revenue relative to revenue, which outpaced the growth in gross profit and compressed gross margin.
Compared to the immediately preceding quarter, gross margin declined slightly as cost of revenue rose more than revenue. Versus the same quarter one year earlier, gross margin also weakened, with gross profit higher but cost of revenue rising at a faster pace.
Monitor the trajectory of cost of revenue relative to revenue, as its recent increase has been the primary factor behind the gross margin decline.