Q2 Rundown: Fastenal (NASDAQ:FAST) Vs Other Maintenance and Repair Distributors Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the maintenance and repair distributors stocks, including Fastenal (NASDAQ:FAST) and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 8 maintenance and repair distributors stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, maintenance and repair distributors stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

Fastenal (NASDAQ:FAST)

Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Fastenal reported revenues of $1.92 billion, up 1.8% year on year. This print was in line with analysts’ expectations, but overall, it was a decent quarter for the company with a narrow beat of analysts’ earnings estimates.

Interestingly, the stock is up 6.4% since reporting and currently trades at $68.28.

Is now the time to buy Fastenal? Access our full analysis of the earnings results here, it’s free.

Best Q2: DXP (NASDAQ:DXPE)

Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components.

DXP reported revenues of $445.6 million, up 4.1% year on year, outperforming analysts’ expectations by 2.7%. It was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.

DXP achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $55.00.

Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: WESCO (NYSE:WCC)

Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

WESCO reported revenues of $5.48 billion, down 4.6% year on year, falling short of analysts’ expectations by 1.5%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

As expected, the stock is down 5.4% since the results and currently trades at $165.38.

Read our full analysis of WESCO’s results here.

Transcat (NASDAQ:TRNS)

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.

Transcat reported revenues of $66.71 million, up 10.1% year on year, falling short of analysts’ expectations by 3.8%. Taking a step back, it was a mixed quarter for the company with an impressive beat of analysts’ earnings estimates.

Transcat had the weakest performance against analyst estimates among its peers. The stock is down 9.2% since reporting and currently trades at $122.76.

Read our full, actionable report on Transcat here, it’s free.

Distribution Solutions (NASDAQ:DSGR)

Founded in 1952, Distribution Solutions (NASDAQ:DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Distribution Solutions reported revenues of $439.5 million, up 16.3% year on year, in line with analysts’ expectations. Zooming out, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

Distribution Solutions pulled off the fastest revenue growth among its peers. The stock is up 11% since reporting and currently trades at $37.22.

Read our full, actionable report on Distribution Solutions here, it’s free.

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