Fastenal falls sharply after warning of softening demand
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Fastenal (NASDAQ:FAST) -4.8% in early trading Wednesday, falling to as low as a 52-week low $46.58, after matching expectations for Q2 earnings and revenues but warning of signs of softening in demand that emerged in May and June.
Fastenal (FAST) sells thousands of products to hundreds of thousands of customers, and its results are considered a good read on the health of the U.S. manufacturing economy.
The company said its inventory balance has increased, as "significant inflation" raised the cost of inventory and the physical quantity of stock product increased as it looked to support customers' growth and supply chain needs.
Fastenal (FAST) said Q2 gross profit margin was flat Y/Y at 46.5%, the first time the result has not increased since Q1 2021.
Fastenal's (FAST) stock price return has declined 23% YTD and 10% during the past year.