NYSE$IIIN

Insteel Industries Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Insteel Reported Record Results Driven by Widening Spreads and Robust Demand.

Insteel Industries Inc. announced record financial results for the fourth quarter and fiscal year ended October 2, 2021. Net earnings for the fourth quarter of fiscal 2021 were $25.2 million, or $1.28 per diluted share, compared to $7.4 million, or $0.38 per share, in the same period a year ago.

  • Net earnings for the fourth quarter of fiscal 2021 were the highest on record for the Company, reaching $25.2 million, or $1.28 per diluted share.
  • Net sales increased 23.9% to $171.3 million from $138.2 million in the prior year quarter.
  • Gross margin increased 920 basis points to 23.3% from 14.1% in the prior year quarter.
  • Operating activities generated $4.4 million of cash during the fourth quarter compared to $11.4 million in the prior year quarter.

Headline financials

Total Revenue

$171M

Previous: $138M+23.9%
EPS (adj)

$1.28

Previous: $0.41+212.2%
Net Income

$25.2M

Previous: $7.4M+240.5%
Gross Profit

$39.9M

Previous: $19.5M+104.7%
Cash & Equivalents

$89.9M

Previous: $68.7M+30.8%
Total Assets

$391M

Previous: $338M+15.6%
Stock-Based Comp

$814K

Previous: $751K+8.4%

Revenue & EPS history

Insteel · Revenue · Quarterly

$171M

Q4 2021+23.9%vs Q4 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

As we look ahead to fiscal 2022, we expect our financial performance to continue to benefit from robust market conditions as confidence grows within private and public non-residential construction markets. Supply chain challenges, initially highlighted in our second quarter of 2021, in addition to critically tight labor markets, continue to impact our operations.

Tailwinds

  • Financial performance is expected to continue to benefit from robust market conditions.
  • Confidence is growing within private and public non-residential construction markets.
  • Experienced a host of challenges in fiscal 2021 including recruiting and staffing obstacles and the most severe steel shortage in memory, each of which is ongoing early in fiscal 2022.
  • Domestic production of steel wire rod, our primary raw material, is inadequate to satisfy domestic demand resulting in on-going customer service challenges, plant operating inefficiencies and escalating prices.
  • Look forward to robust markets and performance in 2022.

Headwinds

  • Recruiting and staffing obstacles are ongoing early in fiscal 2022.
  • The steel shortage is the most severe in memory and is ongoing early in fiscal 2022.
  • Supply chain challenges continue to impact operations.
  • Critically tight labor markets continue to impact operations.
  • Domestic production of steel wire rod, our primary raw material, is inadequate to satisfy domestic demand resulting in on-going customer service challenges, plant operating inefficiencies and escalating prices.

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 Q4 2021

Historical avgQ4 2021

+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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