As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the maintenance and repair distributors industry, 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 9 maintenance and repair distributors stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates.
Luckily, maintenance and repair distributors stocks have performed well with share prices up 11.6% on average 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 $1.96 billion, up 3.4% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ sales volume estimates and EPS in line with analysts’ estimates.
Interestingly, the stock is up 13.9% since reporting and currently trades at $43.12.
Is now the time to buy Fastenal? Access our full analysis of the earnings results here, it’s free.
Best Q1: Global Industrial (NYSE: GIC)
Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.
Global Industrial reported revenues of $321 million, flat year on year, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Global Industrial scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 27.7% since reporting. It currently trades at $28.28.
Is now the time to buy Global Industrial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $478 million, up 14.9% year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 11.7% since the results and currently trades at $29.11.
Read our full analysis of Distribution Solutions’s results here.
W.W. Grainger (NYSE: GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.31 billion, up 1.7% year on year. This number was in line with analysts’ expectations. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 2.7% since reporting and currently trades at $1,050.
Read our full, actionable report on W.W. Grainger here, it’s free.
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 $77.13 million, up 8.8% year on year. This result surpassed analysts’ expectations by 1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is up 10.9% since reporting and currently trades at $89.88.
Read our full, actionable report on Transcat here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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