NYSE$IIIN

Insteel Industries Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Insteel's Q3 2024 financial performance decreased due to narrower spreads between selling prices and raw material costs.

Insteel Industries reported a decrease in net earnings for Q3 2024, with $6.6 million, or $0.34 per share, compared to $10.6 million, or $0.54 per share, for the same period last year. Net sales also decreased by 12.0% to $145.8 million. Despite these decreases, shipments increased by 5.1%.

  • Net earnings decreased to $6.6 million, or $0.34 per share.
  • Net sales decreased to $145.8 million.
  • Gross profit decreased to $15.4 million, representing 10.6% of net sales.
  • Operating cash flow was $18.7 million.

Headline financials

Total Revenue

$146M

Previous: $166M-12.0%
EPS

$0.34

Previous: $0.54-37.0%
Gross Margin

10.6%

No prior period
Operating Cash Flow

$18.7M

No prior period
Capital Expenditures

-$3.24M

No prior period
Free Cash Flow

$6.57M

Previous: $10.6M-37.9%
Net Income

$6.57M

Previous: $10.6M-37.9%
Operating Income

$7.37M

Previous: $15.6M-52.7%
Gross Profit

$15.4M

Previous: $20.4M-24.4%
Stock-Based Comp

$508K

Previous: $421K+20.7%

Revenue & EPS history

Insteel · Revenue · Quarterly

$146M

Q3 2024-12%vs Q3 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

As we move into the fourth fiscal quarter, selling prices and spreads may remain under pressure, particularly where we compete with imported PC strand which is entering the US market at prices lower than the domestic wire rod price. Looking ahead to fiscal 2025, we are optimistic about our business outlook. Easing inflation and the potential for lower interest rates will help drive demand in both our commercial and residential end markets, while the infrastructure related portion of our business should begin to benefit from federal spending associated with the Infrastructure Investment and Jobs Act.

Tailwinds

  • Improving conditions in our markets require that we continue ramping up operating hours at certain WWR plants to manage lead times and maximize shipments.
  • Looking ahead to fiscal 2025, we are optimistic about our business outlook.
  • Easing inflation and the potential for lower interest rates will help drive demand in both our commercial and residential end markets.
  • The infrastructure related portion of our business should begin to benefit from federal spending associated with the Infrastructure Investment and Jobs Act.
  • Committed to enhancing our competitive position by leveraging recent capital investments to optimize operations, expand our product line and lower our cash cost of production.

Headwinds

  • It is difficult to attract and retain qualified people in our plants, which is necessary to expand operating hours
  • Selling prices and spreads may remain under pressure, particularly where we compete with imported PC strand which is entering the US market at prices lower than the domestic wire rod price.
  • Continue to work with the Administration to resolve certain trade-related anomalies that contribute to this problem.
  • Ramping up operating hours to accommodate improved demand continues to be challenging.
  • Average selling prices declined by 5.3%.

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 2024

Historical avgQ3 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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