NYSE$IIIN

Insteel Industries Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Insteel reported strong demand and implemented price increases.

Insteel Industries reported net earnings of $38.6 million, or $1.96 per diluted share, for the third quarter of fiscal 2022, up from $18.4 million, or $0.94 per diluted share, for the same period a year ago. Net sales increased to $227.2 million from $160.7 million for the prior year quarter.

  • Net earnings increased to $38.6 million, or $1.96 per diluted share.
  • Net sales increased to $227.2 million.
  • Average selling prices increased by 53.9%.
  • Gross profit increased to $58.1 million.

Headline financials

Total Revenue

$227M

Previous: $161M+41.3%
EPS (adj)

$1.96

Previous: $1.00+96.0%
Gross Margin

25.6%

Previous: 19.6%+30.6%
Free Cash Flow

$38.6M

Previous: $18.4M+109.6%
Net Income

$38.6M

Previous: $18.4M+109.6%
Operating Income

$50.2M

Previous: $22.3M+125.6%
Gross Profit

$58.1M

Previous: $31.6M+84.1%
Cash & Equivalents

$63M

Previous: $89.8M-29.8%
Total Assets

$481M

Previous: $372M+29.3%
Stock-Based Comp

$293K

Previous: $240K+22.1%

Revenue & EPS history

Insteel · Revenue · Quarterly

$227M

Q3 2022+41.3%vs Q3 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Insteel expects its historically strong financial performance to continue for the fiscal fourth quarter.

Tailwinds

  • Markets remain robust.
  • Economic indicators point to continued momentum through the balance of the calendar year.
  • Deliveries of offshore steel wire rod alleviated raw material shortfalls.
  • Innovative work schedules and higher pay levels should support a ramp up in production.
  • Capital investment plan should reduce labor intensity and operating costs.

Headwinds

  • Increasingly contending with unusually tight labor markets.
  • Softening conditions in the market for standard welded wire reinforcement.
  • Slowing new home construction.
  • Customers more tightly manage inventories.
  • Demand for standard welded wire reinforcement is driven by new home construction.

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 Q3 2022

Historical avgQ3 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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