Fastenal (FAST) to Distribute Industrial Laser Solutions
Fastenal Company FAST signed a distribution agreement with a leading global industrial developer of CleanTech laser cleaning systems and other material applications — Laser Photonics Corporation (“LPC”).
Laser Photonics joined Fastenal in mid-January 2024. Per the deal, Laser Photonics will get access to FAST’s global distribution network, including a closely aligned supplier network, robust sourcing, quality, and manufacturing resources, and multiple teams of subject matter experts and support personnel. Also, LPC will benefit from Fastenal’s world’s most robust and well-equipped distribution network service model, which centers on approximately 3,300 locations and supports its local customer base.
As part of the deal, the initial products will include the CleanTech Handheld LPC-50-CTHD Laser Cleaning System, CleanTech Blaster Cabinet LPC-50-CTBC Laser Cleaning System, MarkStar Handheld LPC-20-MSH Laser Engraving System, WeldTech LPC-1500-LWS Laser Welding System, Personal Protective Equipment (PPE), Laser training for the products offered and more.
Troy Parkos, Fastenal’s regional VP of the Wisconsin area, stated, "Our extensive distribution network and ability to deliver, paired with the cutting-edge technology of Laser Photonics' makes this the ideal partnership."
The company is benefiting from daily sales growth, reasonable expense control and lower net interest expense. Also, growth at Onsite locations, with active sites increasing 12.3% at 2023-end, added to the uptrend. Moreover, its cost-control initiatives and focus on FAST Solutions bode well.
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Shares of the company have gained 19.2% compared with the industry‘s 16.8% growth in the past three months. Earnings estimates for 2024 have increased in the past 60 days, depicting analysts’ optimism.
The trend is likely to continue, given its solid cost-control measures, combative investment to increase Onsite locations and focus on e-commerce business. The company is benefiting from higher demand for industrial capital goods and commodities and its focus on virtual platforms to boost customer engagement.
Zacks Rank
Fastenal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
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