Winona, Minnesota-based Fastenal Company (FAST) is a leading distributor of industrial and construction supplies, primarily serving customers in the manufacturing, construction, and maintenance sectors. The company, valued at a market cap of $44.5 billion,  offers a wide range of products, including fasteners, safety equipment, tools, and electrical components, as well as offering inventory management services. It is set to announce its fiscal first-quarter earnings for 2025 before the market opens on Friday, Apr. 11.

Ahead of the event, analysts expect FAST to report a profit of $0.52 per share on a diluted basis, unchanged from the year-ago quarter. The company has matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions. In the previous quarter, it reported an EPS of $0.46, which missed the consensus estimate by 4.2% due to a broader slowdown and continued softness in manufacturing activities.

For the current year, analysts expect FAST to report EPS of $2.16, up 8% from $2 in fiscal 2024. Looking ahead, analysts expect its EPS to rise 8.3% annually to $2.34 in fiscal 2026.

Over the past year, FAST has surged 2.2%, underperforming the S&P 500’s ($SPX) 8.9% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 6.9% gains over the same time frame.

Fastenal has lagged the broader market over the past year due to weak manufacturing demand, holiday shutdowns, and sluggish industrial production. Cost pressures, supply chain inefficiencies, and inflation have also squeezed its margins, while cyclical volatility in industrial demand has added to the challenges. 

Fastenal released its fourth-quarter earnings on Jan. 17 and its shares edged up 1.8%. The company’s daily sales edged 2.1% higher year-over-year to $29 million, while an additional business day in the quarter, compared to Q4 2023, contributed to a 3.7% increase in total revenue, reaching $1.8 billion. However, this fell short of Wall Street's projections by 1.1%. 

Analysts’ consensus opinion on FAST stock is cautious, with a “Hold” rating overall. Out of 14 analysts covering the stock, three advise a “Strong Buy” rating, nine give a “Hold” rating, and two recommend a “Strong Sell.”

Its mean price target of $78.64 represents a marginal potential upside from the current market prices.