NYSE$IIIN

Insteel Industries Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Insteel's Q1 2021 results benefited from robust demand and increased net earnings.

Insteel Industries reported a strong first quarter with net sales increasing by 22.6% to $119.6 million and net earnings rising to $8.1 million, or $0.42 per share, driven by robust construction activity and wider spreads between selling prices and raw material costs.

  • Net earnings increased to $8.1 million, or $0.42 per share, from $0.6 million, or $0.03 per share, in the same period a year ago.
  • Net sales increased 22.6% to $119.6 million from $97.6 million in the prior year quarter.
  • Shipments increased 21.6% year-over-year, while average selling prices increased by 1.0%.
  • Gross margin widened 1,020 basis points to 16.6% from 6.4% in the prior year quarter.

Headline financials

Total Revenue

$120M

Previous: $97.6M+22.6%
EPS (adj)

$0.45

Previous: $0.03+1400.0%
Gross Margin

16.6%

No prior period
Free Cash Flow

$8.14M

Previous: $555K+1367.2%
Net Income

$8.14M

Previous: $555K+1367.2%
Operating Income

$10.4M

Previous: $220K+4644.1%
Gross Profit

$19.9M

Previous: $6.24M+218.3%
Cash & Equivalents

$50.2M

No prior period
Total Assets

$310M

No prior period
Stock-Based Comp

$224K

Previous: $186K+20.4%

Revenue & EPS history

Insteel · Revenue · Quarterly

$120M

Q1 2021+22.6%vs Q1 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

The company is cautiously optimistic for 2021, but the outlook remains subject to uncertainties surrounding COVID-19 effects on the economy and related uncertainties with respect to funding availability for non-residential construction projects.

Tailwinds

  • Momentum has remained strong through the first weeks of our second quarter driven by solid demand from customers
  • Substantial price increase initiatives which are required to recover rapidly rising raw material costs.
  • On January 8, 2021 the International Trade Commission ruled in our favor with respect to PC Strand trade cases pending against eight countries resulting in the implementation of duties on their exports to U.S. markets ranging from 24% to 194% of value.
  • expect the duties to level the playing field with eight countries that had ignored U.S. trade law in recent years to the detriment of the domestic industry and its employees.
  • expect final determinations in our standard welded wire reinforcing trade cases against Mexico before the end of the current quarter.

Headwinds

  • full year outlook for 2021 is cautiously optimistic, it remains subject to uncertainties surrounding COVID-19 effects on the economy
  • related uncertainties with respect to funding availability for non-residential construction projects.
  • Fluctuations in the cost and availability of our primary raw material, hot-rolled steel wire rod, from domestic and foreign suppliers
  • Competitive pricing pressures and our ability to raise selling prices in order to recover increases in raw material or operating costs
  • Unanticipated plant outages, equipment failures or labor difficulties

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+23.1%

Q3 2018

Best reaction

-21.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-21.6%-32.5%-29.9%
Q1 2026-5.0%+0.4%+11.5%
Q4 2025-18.8%-16.2%-14.9%
Q3 2025+4.1%+3.4%+9.8%
Q2 2025+13.8%+21.7%+39.7%
Q1 2025+8.7%+11.6%+25.6%
Q4 2024-7.3%-8.2%+2.1%
Q3 2024+0.3%+2.6%+0.2%
Q2 2024-5.1%-5.9%-6.1%
Q1 2024-4.8%-5.7%-2.3%
Q4 2023-6.8%-10.9%+7.5%
Q3 2023+3.8%+0.5%-3.3%
Q2 2023-0.6%-0.9%+11.5%
Q1 2023-10.2%-8.0%-4.2%
Q4 2022-8.7%-8.9%+0.6%
Q3 2022-21.7%-24.6%-22.0%
Q2 2022+6.7%+4.5%-0.6%
Q1 2022+1.8%-2.3%-2.1%
Q4 2021-4.7%+1.0%+17.1%
Q3 2021+6.4%+9.4%+19.6%
Q2 2021+9.4%+18.0%+16.4%
Q1 2021+4.0%+3.4%+16.6%
Q4 2020+3.0%+0.3%+20.6%
Q3 2020-0.4%-0.4%-3.1%
Q2 2020+12.5%+6.3%-0.4%
Q1 2020+20.0%+19.8%+2.5%
Q4 2019-2.5%+0.0%+6.8%
Q3 2019-9.5%-7.8%-11.1%
Q2 2019-17.6%-11.9%-10.9%
Q1 2019-10.6%-13.6%-9.9%
Q4 2018-20.2%-21.6%-18.7%
Q3 2018+23.1%+26.0%+19.6%
Q2 2018+1.2%+8.1%+10.9%
Q1 2018+8.9%+8.7%+4.4%
Q4 2017-0.5%-0.5%-3.8%
Q3 2017-18.9%-18.4%-23.4%
Q2 2017-3.1%+1.0%-10.0%
Q1 2017-5.2%+0.5%+7.4%
Q4 2016-14.8%-20.3%+3.0%
Q3 2016+10.3%+10.6%+6.0%
Q2 2016-5.3%
Q1 2016+18.5%
Q4 2015+14.5%
Q3 2015+0.2%
Q2 2015-3.6%
Q1 2015+2.1%
Q4 2014+2.8%
Q3 2014+4.7%
Q2 2014+13.6%
Q1 2014-1.4%
Q4 2013+4.3%
Q3 2013-3.9%
Q2 2013+6.8%
Q1 2013+6.7%
Q4 2012-4.5%
Q3 2012-0.4%
Q2 2012+1.1%
Q1 2011-0.1%
Q1 2012+6.6%
Q4 2009+8.3%
Q2 2011+8.3%
Q4 2011+8.3%
Q3 2010+0.2%
Q3 2011+0.2%
Q4 2010+0.2%
Q2 2010+5.4%
Q1 2010-5.4%

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