NYSE$IIIN

Insteel Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Insteel Industries reported results for the second quarter of fiscal year 2024, with increased net earnings compared to the same period last year, driven by widening spreads between selling prices and raw material costs.

Insteel Industries reported net earnings of $6.9 million, or $0.35 per diluted share, for the second quarter of fiscal 2024. Net sales decreased by 19.9% to $127.4 million. The company benefited from widening spreads between selling prices and raw material costs.

  • Net earnings increased to $6.9 million, or $0.35 per diluted share.
  • Net sales decreased to $127.4 million.
  • Gross profit increased to $15.7 million, representing 12.3% of net sales.
  • The company had a net cash balance of $83.9 million and no debt outstanding as of March 30, 2024.

Headline financials

Total Revenue

$127M

Previous: $159M-19.9%
EPS

$0.35

Previous: $0.26+34.6%
Gross Margin

12.3%

No prior period
Capital Expenditures

-$1.96M

No prior period
Free Cash Flow

$6.94M

Previous: $5.1M+36.0%
Net Income

$6.94M

Previous: $5.1M+36.0%
Operating Income

$7.68M

Previous: $8.89M-13.7%
Gross Profit

$15.7M

Previous: $13.3M+18.5%
Stock-Based Comp

$997K

Previous: $983K+1.4%

Revenue & EPS history

Insteel · Revenue · Quarterly

$127M

Q2 2024-19.9%vs Q2 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

Insteel anticipates growing momentum across its business driven by the seasonal upturn in construction activity, continued recovery in demand from customers, and an improving macroeconomic outlook. The company also remains optimistic about the expected growth in infrastructure construction.

Tailwinds

  • Improving business conditions with inventories appearing to have corrected.
  • Seasonal forces causing a ramp-up in operating hours at most plants.
  • Stabilization of selling prices.
  • Consumption of lower cost inventory.
  • Expected growth in infrastructure construction.

Headwinds

  • Shipment growth is required for substantially improved financial performance.
  • Competitive pressure.
  • Weakness in the commercial construction market.
  • Adverse weather conditions that reduced construction activity.
  • Highly competitive pricing environment that has persisted for over a year, along with the growing impact of low-priced PC strand imports.

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 Q2 2024

Historical avgQ2 2024

+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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