Fastenal Company stock research
FY2024 Q4
Fastenal (FAST) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased compared to the prior quarter, and cost of revenue decreased less proportionally, resulting in lower gross profit and a slight weakening of gross margin. Versus the same quarter a year ago, revenue was stable while cost of revenue increased, leading to higher gross profit but a lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue decreased compared to the prior quarter, and cost of revenue decreased less proportionally, resulting in lower gross profit and a slight weakening of gross margin. Versus the same quarter a year ago, revenue was stable while cost of revenue increased, leading to higher gross profit but a lower gross margin.
- The strongest observable margin driver was the relative movement of cost of revenue: sequentially, cost fell slower than revenue, and year-over-year, cost grew while revenue was flat, both pressuring gross margin.
- Gross margin weakened slightly compared to the prior quarter and declined more notably versus the same quarter last year. The decline reflects a cost structure that did not adjust proportionally to changes in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.8%
Gross profit
$818.2M
Revenue
$1.8B
Cost of revenue
$1.0B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.6 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, 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% |
| Dec 31, 2024 | $1.8B | $818.2M | $1.0B | 44.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.1 pts
Year-over-year change
Dec 31, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relative movement of cost of revenue: sequentially, cost fell slower than revenue, and year-over-year, cost grew while revenue was flat, both pressuring gross margin.
Gross margin weakened slightly compared to the prior quarter and declined more notably versus the same quarter last year. The decline reflects a cost structure that did not adjust proportionally to changes in revenue.
Monitor the relationship between cost of revenue and revenue, as the divergence in their growth rates has been the primary factor behind margin compression.