Fastenal Company stock research
FY2024 Q3
Fastenal (FAST) Gross Margin — Quarter Ended Sep 30, 2024
Gross margin weakened compared to both the prior quarter and the same quarter last year, as the growth in cost of revenue outpaced the growth in revenue. Revenue was stable sequentially but rose year-over-year, while gross profit edged lower versus the prior quarter and higher versus the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Gross margin weakened compared to both the prior quarter and the same quarter last year, as the growth in cost of revenue outpaced the growth in revenue. Revenue was stable sequentially but rose year-over-year, while gross profit edged lower versus the prior quarter and higher versus the year-ago period.
- The most observable driver was the relative increase in cost of revenue, which grew at a faster pace than revenue when compared year-over-year and sequentially, compressing the margin.
- Compared to the preceding quarter, gross profit was slightly lower and gross margin narrowed modestly despite similar revenue levels. Versus the same quarter a year ago, revenue was higher but gross profit increased less proportionally, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.9%
Gross profit
$858.6M
Revenue
$1.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.9B | $858.6M | $1.1B | 44.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.1 pts
Year-over-year change
Sep 30, 2023
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the relative increase in cost of revenue, which grew at a faster pace than revenue when compared year-over-year and sequentially, compressing the margin.
Compared to the preceding quarter, gross profit was slightly lower and gross margin narrowed modestly despite similar revenue levels. Versus the same quarter a year ago, revenue was higher but gross profit increased less proportionally, leading to a lower gross margin.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters to assess whether margin pressure persists.