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Fastenal (FAST) Set to Act as NHL's Official MRO Partner
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Fastenal Company (FAST - Free Report) has inked a multi-year global partnership deal with the National Hockey League (“NHL”) to provide an efficient and reliable Maintenance, Repair and Operations (MRO) supply chain for ice rinks across North America through the 2023-24 time period.
Fastenal’s Services to NHL
Per the deal, Fastenal will help NHL maintain a safe environment with a variety of MRO supply needs including PPE (personal protective equipment), sanitizer and cleaning products. Its inventory management and procurement expertise will also benefit the entire hockey ecosystem including NHL clubs and facilities, as well as community rinks.
Within NHL clubs and facilities, the partnership will implement a standardized equipment program and optimize operations by accessing process improvement tools to simplify procurement, control spending, as well as visualize inventory.
At community rinks, Fastenal’s nationwide network will help the 4,800-plus facilities to navigate the challenges of the aging infrastructure and rising operating costs to keep ice hockey sustainable as well as rink operations cost effective.
Diversified Business to Drive Growth
Fastenal is a national wholesale distributor of industrial and construction supplies. With this partnership, Fastenal will now be seen at future NHL tentpole events like corner in-ice advertising positions and in-arena branding at the NHL Winter Classic, NHL All-Star Weekend, NHL Global Series and NHL Stadium Series.
Over the last several quarters, the company has been benefiting from Onsite location and industrial vending solutions. In fact, industrial vending is one of the primary growth drivers of Fastenal, and has the potential to significantly increase sales as well as profits.
Meanwhile, its diverse range of products helps it gain competitive advantage over peers. For the second quarter, revenues grew 10.3% year over year owing to increased demand for PPE products. Daily sales improved 10.3%, higher than 2.8% and 7.9% increase registered in first-quarter 2020 and second-quarter 2019, respectively.
Particularly, sales of safety products (accounting for 34% of second-quarter sales) grew 116.3% on a daily basis. The government business was also up 266.7% year over year on a daily basis. Moreover, sales to healthcare organizations more than quadrupled during the quarter.
The global MRO industry is expected to witness a CAGR of 2.13% during 2019-2025, driven by growing digitization and business efficiency.
Shares of the company have gained 24% in the past three months compared with the industry’s 22.2% rally. Fastenal’s aggressive investments to boost onsite locations, vending machines count and the e-commerce business are driving growth. Moreover, the growth trends in the MRO industry will boost Fastenal’s business in the future.
Some better-ranked players in the same space include Lumber Liquidators Holdings, Inc. , Builders FirstSource, Inc. (BLDR - Free Report) and BMC Stock Holdings, Inc. . While Builders FirstSource and BMC sport a Zacks Rank #1, Lumber Liquidators carries a Zacks Rank #2 (Buy).
Lumber Liquidators and BMC’s 2020 EPS growth rate is projected at 67.2% and 4.7%, respectively. Builders FirstSource surpassed earnings estimates in each of the trailing four quarters, with an average surprise of 51%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Fastenal (FAST) Set to Act as NHL's Official MRO Partner
Fastenal Company (FAST - Free Report) has inked a multi-year global partnership deal with the National Hockey League (“NHL”) to provide an efficient and reliable Maintenance, Repair and Operations (MRO) supply chain for ice rinks across North America through the 2023-24 time period.
Fastenal’s Services to NHL
Per the deal, Fastenal will help NHL maintain a safe environment with a variety of MRO supply needs including PPE (personal protective equipment), sanitizer and cleaning products. Its inventory management and procurement expertise will also benefit the entire hockey ecosystem including NHL clubs and facilities, as well as community rinks.
Within NHL clubs and facilities, the partnership will implement a standardized equipment program and optimize operations by accessing process improvement tools to simplify procurement, control spending, as well as visualize inventory.
At community rinks, Fastenal’s nationwide network will help the 4,800-plus facilities to navigate the challenges of the aging infrastructure and rising operating costs to keep ice hockey sustainable as well as rink operations cost effective.
Diversified Business to Drive Growth
Fastenal is a national wholesale distributor of industrial and construction supplies. With this partnership, Fastenal will now be seen at future NHL tentpole events like corner in-ice advertising positions and in-arena branding at the NHL Winter Classic, NHL All-Star Weekend, NHL Global Series and NHL Stadium Series.
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Over the last several quarters, the company has been benefiting from Onsite location and industrial vending solutions. In fact, industrial vending is one of the primary growth drivers of Fastenal, and has the potential to significantly increase sales as well as profits.
Meanwhile, its diverse range of products helps it gain competitive advantage over peers. For the second quarter, revenues grew 10.3% year over year owing to increased demand for PPE products. Daily sales improved 10.3%, higher than 2.8% and 7.9% increase registered in first-quarter 2020 and second-quarter 2019, respectively.
Particularly, sales of safety products (accounting for 34% of second-quarter sales) grew 116.3% on a daily basis. The government business was also up 266.7% year over year on a daily basis. Moreover, sales to healthcare organizations more than quadrupled during the quarter.
The global MRO industry is expected to witness a CAGR of 2.13% during 2019-2025, driven by growing digitization and business efficiency.
Shares of the company have gained 24% in the past three months compared with the industry’s 22.2% rally. Fastenal’s aggressive investments to boost onsite locations, vending machines count and the e-commerce business are driving growth. Moreover, the growth trends in the MRO industry will boost Fastenal’s business in the future.
Zacks Rank & Stocks to Consider
Fastenal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked players in the same space include Lumber Liquidators Holdings, Inc. , Builders FirstSource, Inc. (BLDR - Free Report) and BMC Stock Holdings, Inc. . While Builders FirstSource and BMC sport a Zacks Rank #1, Lumber Liquidators carries a Zacks Rank #2 (Buy).
Lumber Liquidators and BMC’s 2020 EPS growth rate is projected at 67.2% and 4.7%, respectively. Builders FirstSource surpassed earnings estimates in each of the trailing four quarters, with an average surprise of 51%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>