Fastenal Company FAST is scheduled to report its first-quarter 2026 results on April 13, before the opening bell.
In the last reported quarter, its earnings per share (EPS) and net sales met the Zacks Consensus Estimate, respectively. On a year-over-year basis, earnings were up 12.2% year over year from 23 cents in the prior-year quarter, and net sales increased 11.1% year over year.
Fastenal’s earnings topped the consensus mark in one of the last four quarters, missed on one occasion and met on the other two occasions, with the average surprise being 0.1%.
Trend in FAST’s Estimate Revision
For the first quarter, the Zacks Consensus Estimate for EPS has remained unchanged over the past 30 days at 30 cents per share. The estimated figure indicates 15.4% year-over-year growth.
The consensus mark for revenues is pegged at $2.2 billion, indicating a 12.2% year-over-year growth.
Fastenal Company Price and EPS Surprise
Fastenal Company price-eps-surprise | Fastenal Company Quote
Factors Likely to Shape Fastenal's Q1 Performance
Sales
Fastenal’s top-line performance in the first quarter is likely to have benefited from continued strength in its large contract customer base. The company has been consistently gaining traction with national and multi-site accounts, supported by higher customer signings and deeper engagement with existing clients. This trend drove double-digit daily sales growth in the previous quarter and is expected to remain a key contributor in the first quarter.
Growth in manufacturing end markets, particularly heavy and other manufacturing, is another positive factor. Fastenal has been outperforming broader industrial production trends by leveraging its service model, including on-site solutions and digital tools, which enhance customer retention and wallet share.
The company’s expanding digital footprint—through FMI technology, vending solutions and e-commerce—is also likely to have supported sales by improving customer stickiness and driving incremental volume. Additionally, targeted pricing actions, which contributed roughly 3% to sales growth in prior periods, may have provided further topline support.
However, challenges persist. The broader industrial environment remains uneven, with manufacturing activity showing mixed signals and industrial production largely flat. This softness could weigh on demand, particularly among smaller, non-contract customers that are more sensitive to macro conditions.
Overall, the Zacks Consensus Estimate of Fastenal’s daily sales is currently pegged at $36.78 million, suggesting an increase from last quarter’s $32.20 million and from $31.10 million a year ago.
Margins
On the margin front, pricing discipline and cost management are expected to remain key positives. Fastenal has been able to largely offset input cost inflation through targeted price increases, maintaining a relatively neutral price-cost dynamic.
Operating leverage is another supportive factor. The company has demonstrated strong SG&A control, with expenses declining as a percentage of sales in recent quarters, aided by higher volumes and efficiency gains from digital initiatives.
That said, gross margin pressures may persist in the first quarter. The ongoing mix shift toward large customers—while beneficial for volume and long-term growth—typically carries lower gross margins. Additionally, prior headwinds such as supplier rebate timing and inventory-related cost impacts could create some near-term volatility.
Overall, Fastenal’s first-quarter results are likely to reflect solid execution against a challenging backdrop, with share gains and operational discipline helping to offset macro softness and margin headwinds.
What the Zacks Model Unveils for Fastenal
Our proven model 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. This is exactly the case this time for the stock.
Earnings ESP: The company has an Earnings ESP of +2.15%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, FAST carries a Zacks Rank of 2.
Other Stocks With the Favorable Combination
Here are some 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.
Powell Industries POWL has an Earnings ESP of +4.77% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Powell’s earnings topped the consensus mark in each of the last four quarters, with the average surprise being 12.9%. Earnings for the company’s first-quarter 2026 are expected to grow 1.6% year over year.
ParkerHannifin PH has an Earnings ESP of +0.64% and a Zacks Rank of 2.
ParkerHannifin’s earnings topped the consensus mark in all the last four quarters, with the average surprise being 6.8%. Earnings for the company’s first-quarter 2026 are expected to increase 12.5% year over year.
Eaton ETN has an Earnings ESP of +0.87% and a Zacks Rank of 3.
Eaton’s earnings topped the consensus mark in three of the last four quarters and met on the remaining occasion, with the average surprise being 0.5%. Earnings for the company’s first-quarter 2026 are expected to grow 1.1% year over year.
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Fastenal Company (FAST): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Powell Industries, Inc. (POWL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).