NYSE$IIIN

Insteel Industries Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Insteel Industries' Q3 2023 financial performance decreased due to narrower spreads between selling prices and raw material costs, lower shipments, and higher unit manufacturing costs on lower production volume.

Insteel Industries reported a decrease in net earnings for Q3 2023 to $10.6 million, or $0.54 per share, compared to $38.6 million, or $1.96 per diluted share, for the same period last year. Net sales also decreased by 27.1% to $165.7 million, driven by a 24.7% decrease in average selling prices and a 3.2% decline in shipments.

  • Net earnings decreased to $10.6 million, or $0.54 per share, compared to $38.6 million, or $1.96 per diluted share, for the same period last year.
  • Net sales decreased 27.1% to $165.7 million from $227.2 million in the prior year quarter, driven by a 24.7% decrease in average selling prices and a 3.2% decline in shipments.
  • Gross profit decreased to $20.4 million from $58.1 million in the prior year quarter, and gross margin narrowed to 12.3% from 25.6%.
  • Operating activities generated $23.8 million of cash during the quarter compared with using $5.0 million for the prior year quarter due to the relative changes in net working capital.

Headline financials

Total Revenue

$166M

Previous: $227M-27.1%
EPS (adj)

$0.54

Previous: $1.96-72.4%
Free Cash Flow

$10.6M

Previous: $38.6M-72.6%
Net Income

$10.6M

Previous: $38.6M-72.6%
Operating Income

$15.6M

Previous: $50.2M-69.0%
Gross Profit

$20.4M

Previous: $58.1M-64.9%
Cash & Equivalents

$91.7M

Previous: $63M+45.6%
Total Assets

$445M

Previous: $481M-7.4%
Stock-Based Comp

$421K

Previous: $293K+43.7%

Revenue & EPS history

Insteel · Revenue · Quarterly

$166M

Q3 2023-27.1%vs Q3 2022
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

The company expects a modest recovery to continue driven by nonresidential construction activity and the recovery in residential markets. Federal spending from the Infrastructure Investment and Jobs Act is expected to begin to drive demand as we move into the second half of the calendar year and beyond. Several ongoing capital projects focused on broadening our product offering, expanding our capacity, and reducing operating costs are expected to be completed in the fourth fiscal quarter and the first quarter of fiscal 2024.

Tailwinds

  • Modest recovery expected to continue.
  • Driven by nonresidential construction activity.
  • Driven by recovery in residential markets.
  • Federal spending from the Infrastructure Investment and Jobs Act is expected to begin to drive demand.
  • Ongoing capital projects focused on broadening product offering, expanding capacity, and reducing operating costs are expected to be completed.

Headwinds

  • Lethargic market conditions experienced during the third quarter.
  • Shipment volume was well below expectations.
  • Competitive pricing pressures.
  • Overall decline in steel prices.
  • Consumption of higher cost inventory purchased in prior periods.

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 2023

Historical avgQ3 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro