|Bid||0.00 x 4000|
|Ask||0.00 x 1000|
|Day's Range||36.82 - 37.79|
|52 Week Range||24.00 - 37.79|
|Beta (3Y Monthly)||1.63|
|PE Ratio (TTM)||27.63|
|Earnings Date||Jan 15, 2020 - Jan 20, 2020|
|Forward Dividend & Yield||0.88 (2.34%)|
|1y Target Est||34.33|
(Bloomberg Opinion) -- United Parcel Service Inc. is offering everything to investors that FedEx Corp. isn’t, and that’s still seemingly not enough.The package-delivery company on Tuesday reported better-than-expected third-quarter earnings and maintained its full-year profit outlook. That’s a sharp contrast to FedEx’s bruising guidance cut just over a month ago, which the company blamed on a weakening global economy, and analysts blamed on idiosyncratic foot faults. UPS is trimming its capital expenditure budget by $500 million this year and next year, which will help boost its 2019 free cash flow to more than $4 billion. FedEx, meanwhile, is on track to burn cash in fiscal 2020 and Moody’s Investors Service Inc. recently lowered its outlook for the company’s credit rating. Management’s decision to nevertheless leave its $5.9 billion spending budget intact has left investors scratching their heads — particularly because the billions it has spent so far don’t appear to be yielding results.UPS on Tuesday reported another quarterly improvement in its adjusted operating margin, a sign that its own push to invest in newer planes and automated systems is paying off as it manages a deluge of less profitable e-commerce shipments. And yet, the stock fell more than 4% in early trading. The problem is, as much as UPS is widening the execution gap between itself and FedEx, it can’t escape the weakening macroeconomic backdrop.Revenue in the third quarter was marginally weaker than analysts had been expecting, and UPS warned that its profit guidance was contingent on “no further deterioration” in global trade uncertainty or U.S. industrial weakness. No one really knows what’s going to happen with trade relations. President Donald Trump signaled this week that negotiations over a partial deal with China are progressing and could lead to a signed agreement by November, but there’s little indication that the existing tariffs will be rolled back. I, for one, wouldn’t be willing to bet against a further slowdown in manufacturing, given declining shipment volumes at the railroads in the third quarter and decelerating sales growth at the likes of industrial distributor Fastenal Co.Drilling down into UPS’s results, there’s a variety of other nitpick items that take on more importance in a weaker economy. For example, while unit costs improved by 2.5% on an adjusted basis in the U.S. domestic division, the average amount of revenue UPS collected per package in that business declined by about 1%. The third quarter brought a surge in volumes, with FedEx’s decision to stop carrying packages for Amazon.com Inc. in the U.S. likely driving more of the e-commerce giant’s packages to UPS. A weakening yield will raise questions about how profitable that business can ultimately be for UPS, and whether it made the right decision by sticking with a customer that’s also increasingly a competitor.Adding to the jitters, UPS also announced on Tuesday that Jim Barber, chief operating officer and the heir apparent to CEO David Abney, was stepping down. Barber’s departure is a surprise, and it’s always going to raise eyebrows when a leadership change is announced without the simultaneous appointment of a successor. That being said, Abney has made an effort to shake up UPS’s staid culture by bringing in more executives from the outside. Earlier this year, UPS hired a PepsiCo Inc. executive, Brian Newman, to be its chief financial officer. Abney hired his chief transformation officer from Walmart Inc., his chief marketing officer from Xerox Corp. and his supply-chain solutions leader from logistics company DB Schenker. So the departure of Barber, a nearly 35-year veteran, would seem to be setting up an appointment in a similar vein. Grooming an outsider to succeed Abney would further differentiate UPS from FedEx, which is still run by founder Fred Smith and whose top executives have all been there for decades and act like it.UPS is moving in the right direction, even if the economy isn’t.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Manufacturing is suffering through decelerating growth. The good news? Industrials could be out of the doldrums by the middle of 2020, according to at least one analyst.
Fastenal Company (NASDAQ: FAST) shares jumped 17.2% to a new all-time high on Friday after the company reported earnings and revenue beats. The construction equipment maker reported 7.8% sales growth, while gross margins dropped from 48.1% to 47.2%. Fastenal’s strong quarter was reassuring for investors after the company fell short of consensus expectations in the second quarter.
Real in the sense that investors will finally have something solid to trade on and not just the latest back and forth around trade talks with China—like the one that helped spike stocks on Friday and now has them looking softer (see more below). Later this week brings Bank of America Corp (NYSE: BAC) and Morgan Stanley (NYSE: MS).
Today we'll look at Fastenal Company (NASDAQ:FAST) and reflect on its potential as an investment. Specifically, we'll...
Raymond James analyst Samuel Darkatsh cuts his recommendation on Fastenal to market perform from strong buy, citing valuation.
Shares of Fastenal Co. soared toward a record high Friday, as the industrials company managed to fend off a continued slowing in economic activity and a mysterious weakening in its local construction business to produce a third-quarter profit and sales that rose above Wall Street forecasts.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. Roku (NASDAQ: ROKU ) shares were up 5.5% to ...
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in […]
Wall Street rose for the third straight session on Friday, as investors expected top-level trade talks between the United States and China to result in a partial trade deal and delay planned U.S. tariff increases. Shares of Apple Inc hit a record high and were the biggest boost to the S&P 500 and Nasdaq, while the technology sector was headed for its best day in five weeks.
(Bloomberg Opinion) -- Maybe things aren’t so dire in manufacturing after all. At least not yet. Fastenal Co., a distributor of factory-floor basics, unofficially kicked off industrial earnings season on Friday and the numbers were better than analysts had expected on all major fronts, including overall revenue and gross margin. That fueled a pop of as much as 10% in Fastenal shares in early trading that probably also had something to do with the heavy short interest that accumulated in the stock heading into the earnings release. Fastenal’s better-than-feared results likely also contributed to a pre-market rally in the XLI Industrial Select Sector SPDR fund as investors rethought their expectations for a truly ugly batch of third-quarter industrial earnings.It’s encouraging that Fastenal’s earnings were as resilient as they were in the wake of data from the Institute for Supply Management that showed U.S. factory activity had slowed to the weakest level since 2009 in September. Fastenal reported a 6.1% increase in daily sales in the third quarter, a slowdown from the previous period but not the kind of number you’d expect if the industrial economy was going through the sort of contraction indicated by the ISM data. That’s likely to draw bigger questions about the extent to which a U.S. labor strike at General Motors Co. may have affected the data. The strike is approaching the one-month mark and is having ripple effects as suppliers pile up unneeded inventory. GM’s cross-border supply chains have forced the company to stop work even at some plants in Mexico and Canada.All that being said, it’s clear from Fastenal’s results that the manufacturing slowdown is real, and it’s deepening. While the company’s daily sales grew 5.8% in September, that’s a deceleration from August and July and the weakest monthly pace since January 2017, when manufacturers were emerging from the so-called industrial recession spurred by slumping oil prices. Among Fastenal’s top 100 national accounts, just 58% were growing in September, compared with 88% in January.Fastenal also noted that because of slower economic activity, customers are hitting the pause button on orders for its vending machines that dispense industrial parts, lengthening the sales cycle. Fastenal has made embedded services like vending machines and onsite sales teams the linchpin of its growth strategy as it and other distributors fend off incursions by Amazon.com Inc. Fastenal now expects to sign customers up for about 22,000 vending machines in 2019, down from its previous goal of 23,000 to 25,000.Fastenal’s numbers suggest we may still be on track for the sort of soft landing investors and analysts had been modeling for the manufacturing industry before the ISM numbers blew up that analysis. But make no mistake: the industrial economy is still moving in the wrong direction.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
After some upbeat commentary from the White House, investors appear hopeful that U.S.-China trade talks will be more productive than previous rounds.
(FAST) has good news for shareholders, and investors in general: Things aren’t that bad in the industrial economy. Fastenal (ticker: FAST) is a good indicator of what’s going on in industry. It operates more than 3,200 locations and its selling patterns offer a real-time look for investors into inventories, demand, and U.S. business sentiment.
The company reported quarterly sales of $1.379 billion, which beat the analyst consensus estimate of $1.37 billion by 0.66%. The general slowing in economic activity that was experienced in the second quarter continued in the third quarter, according to Fastenal. Fastenal shares were trading 1.21% higher at $31.02 in Friday's premarket session.
Fastenal (FAST) delivered earnings and revenue surprises of 5.71% and 0.31%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Shares of Fastenal Co. surged 5.6% in premarket trading Friday after the maker of fasteners, tools and manufacturing supplies reported third-quarter profit and sales that rose above expectations. Net income increased to $213.5 million, or 37 cents a share, from $197.6 million, or 34 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 35 cents. Sales grew 7.8% to $1.38 billion, above the FactSet consensus of $1.37 billion, amid higher unit sales and higher product pricing. Fastenal said the "general slowing" in economic activity seen during the second quarter continued into the third quarter. Gross margin declined to 47.2% from 48.1%. The stock has gained 2.2% over the past three months through Thursday, while the S&P 500 has slipped 2.1%.