Benzinga | Jul 12, 2021 10:04AM EDT

Fastenal Earnings Preview

Fastenal (NASDAQ:FAST) will be releasing its next round of earnings this Tuesday, July 13. For all of the relevant information, here is your guide for Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Fastenal EPS will likely be near $0.41 while revenue will be around $1.51 billion, according to analysts. In the same quarter last year, Fastenal reported EPS of $0.42 on revenue of $1.51 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 2.38%. Revenue would be up 0.07% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.36 0.33 0.37 0.36EPS Actual 0.37 0.34 0.38 0.42Revenue Estimate 1.42 B 1.34 B 1.42 B 1.47 BRevenue Actual 1.42 B 1.36 B 1.41 B 1.51 B

Stock Performance

Shares of Fastenal were trading at $53.84 as of July 09. Over the last 52-week period, shares are up 24.72%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fastenal is scheduled to hold the call at 10:00:00 ET and can be accessed here.