Here's What You Must Know Ahead of Fastenal's Q2 Earnings Release

Fastenal Company FAST is scheduled to report its second-quarter 2025 results on July 14, before the opening bell.

In the last reported quarter, Fastenal’s earnings met the Zacks Consensus Estimate while the net sales topped the same by 0.5%. On a year-over-year basis, the top line rose 3.4% while the bottom line remained flat.

Fastenal’s earnings missed the consensus mark in one of the last four quarters and met on the other three occasions, with the average negative surprise being 1%.

Trend in FAST’s Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged over the past 60 days at 28 cents. The estimated figure indicates 12% year-over-year growth.

Fastenal Company Price and EPS Surprise

Fastenal Company price-eps-surprise | Fastenal Company Quote

The consensus mark for net sales is pegged at $2.06 billion, indicating a 7.6% increase from the year-ago reported figure of $1.92 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Key Factors to Note for Fastenal's Q2

Sales

The top line of the company is expected to have gained from improved customer contract signing trends. The elevated trends are likely to have been fueled by its focus on improving its digital footprint and increased investments in sales resources. Moreover, a balanced mix of onsite and offsite services and market share gains across various product categories is expected to have added to the uptick. Despite challenging market conditions, Fastenal's positive attributes are anticipated to have driven its growth.

If we go by the latest monthly sales report, May’s average daily sales (ADS) grew 9.3% to $32.7 million, with the same increasing by 4.1% from April 2025.

In terms of end markets in May 2025, Heavy Manufacturing and Other Manufacturing daily sales increased 8.6% and 12.8%, respectively, with Non-residential Construction growing 3.3%. In terms of product line, daily sales for Fasteners and Safety grew 8.9% and 10.4%, respectively. Other categories improved 9.2% in May 2025. During the same month, the daily sales growth of contract and non-contract customers was 12% and 4%, respectively, with daily sales through eBusiness growing 14%.

Our model predicts Fastenal’s average daily sales to be $31.7 million for the second quarter, indicating an increase of 6.1% from a year ago.

Margins

The bottom line of FAST is expected to have improved during the second quarter on the back of its active cost control efforts to counter cost inflation. The efforts include automating warehouses, increasing delivery efficiency through its trucking network and selling more private-label products with higher margins.

The company is likely to have faced elevated occupancy and employee-related expenses alongside increases in several other cost categories like rental costs and utilities, hub investments and upgrades and incremental depreciation. However, the increased leverage from top-line growth and margin expansion initiatives is expected to more than offset these headwinds.

We expect total operating expenses (as a percentage of net sales) to contract 60 basis points to 24.3% for the to-be-reported quarter.

What the Zacks Model Unveils for Fastenal

Our proven model conclusively predicts an earnings beat for Fastenal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: The company has an Earnings ESP of +3.05%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, FAST carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here .

Other Stocks With the Favorable Combination

Here are some other companies from the Industrial Products sector, which, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Eos Energy Enterprises, Inc. EOSE has an Earnings ESP of +20.64% and a Zacks Rank of 2.

Eos Energy’s earnings missed the consensus mark in each of the last four quarters, with the average negative surprise being 254.5%. Earnings for the company’s second quarter of 2025 are expected to grow 46.7% year over year.

MSC Industrial Direct Co., Inc. MSM has an Earnings ESP of +4.77% and a Zacks Rank of 2.

MSC Industrial’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 6%. Earnings for the company’s fourth quarter of fiscal 2025 are expected to decline 6.8% year over year.

Otis Worldwide Corporation OTIS has an Earnings ESP of +0.66% and a Zacks Rank of 2.

Otis Worldwide’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with the average surprise being 0.2%. Earnings for the company’s second quarter of 2025 are expected to tumble 3.8% year over year.

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Fastenal Company (FAST) : Free Stock Analysis Report

MSC Industrial Direct Company, Inc. (MSM) : Free Stock Analysis Report

Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report

Eos Energy Enterprises, Inc. (EOSE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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