NYSE$IIIN

Insteel Industries Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Insteel Industries reported record quarterly revenue and record first quarter net earnings.

Insteel Industries reported a strong first quarter for fiscal year 2022, with record quarterly revenue of $178.5 million and record first quarter net earnings of $23.1 million, or $1.18 per diluted share. The company benefited from strong demand for concrete reinforcing products and wider spreads between selling prices and raw material costs.

  • Insteel recorded record quarterly revenue of $178.5 million.
  • Net earnings reached a record $23.1 million, or $1.18 per diluted share.
  • Net sales increased by 49.2% compared to the same period last year.
  • Gross margin widened to 23.7% due to favorable pricing spreads.

Headline financials

Total Revenue

$178M

Previous: $120M+49.2%
EPS (adj)

$1.18

Previous: $0.45+162.2%
Gross Margin

23.7%

Previous: 16.6%+42.8%
Free Cash Flow

$23.1M

Previous: $8.14M+184.0%
Net Income

$23.1M

Previous: $8.14M+184.0%
Operating Income

$29.8M

Previous: $10.4M+185.9%
Gross Profit

$42.4M

Previous: $19.9M+113.4%
Cash & Equivalents

$63M

Previous: $50.2M+25.5%
Total Assets

$369M

Previous: $310M+19.0%
Stock-Based Comp

$272K

Previous: $224K+21.4%

Revenue & EPS history

Insteel · Revenue · Quarterly

$178M

Q1 2022+49.2%vs Q1 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Insteel anticipates sustained growth in 2022, driven by robust private and public non-residential construction markets and the expected stimulus from the Infrastructure Investment and Jobs Act.

Tailwinds

  • Optimistic outlook for 2022 with robust construction markets.
  • Key leading market indicators signaling sustained growth.
  • Expected stimulus from the Infrastructure Investment and Jobs Act starting in late 2022.
  • International sourcing strategy to fill gaps in domestic steel wire rod supplies.
  • Agreements in principle for nearly $20 million in state-of-the-art technology to expand capacity and improve quality.

Headwinds

  • Inadequate availability of domestic hot-rolled steel wire rod.
  • Persistent labor challenges impacting operations.
  • Operations are expected to be impacted during the current quarter.
  • International sourcing strategy going forward will be influenced by the performance of domestic suppliers during our second and third quarters
  • Firming up schedules but expect most of these initiatives to come online during fiscal 2023.

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 2022

Historical avgQ1 2022

+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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