NYSE$IIIN

Insteel Industries Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Insteel's Q4 2024 financial performance reflected a decrease in net sales and earnings, impacted by narrower spreads and lower shipments.

Insteel Industries reported net sales of $134.3 million and net income of $4.7 million, or $0.24 per share, for the fourth quarter of fiscal 2024. The results were negatively impacted by narrower spreads between selling prices and raw material costs, along with lower shipments.

  • Net sales decreased by 14.7% to $134.3 million due to lower average selling prices and a decline in shipments.
  • Net income was $4.7 million, or $0.24 per share, compared to $5.6 million, or $0.29 per share, in the prior year quarter.
  • Gross margin increased slightly to 9.1% from 8.9% in the prior year quarter, primarily due to lower unit manufacturing costs.
  • The company ended the quarter with a net cash balance of $111.5 million and no debt outstanding.

Headline financials

Total Revenue

$134M

Previous: $158M-14.7%
EPS (adj)

$0.24

Previous: $0.29-17.2%
Gross Margin

9.1%

No prior period
Operating Cash Flow

$16.2M

No prior period
Capital Expenditures

-$1.69M

No prior period
Net Income

$4.7M

Previous: $5.6M-16.1%
Operating Income

$4.79M

Previous: $5.6M-14.5%
Gross Profit

$12.3M

Previous: $14M-12.1%
Stock-Based Comp

$1.17M

Previous: $891K+31.2%

Revenue & EPS history

Insteel · Revenue · Quarterly

$134M

Q4 2024-14.7%vs Q4 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

Insteel anticipates a gradual improvement in business conditions across its markets in fiscal year 2025, expecting that declining inflation and the downward trajectory in interest rates will help stimulate demand. However, import-related headwinds are expected to persist in PC strand markets, putting further pressure on selling prices, volumes and spreads in the first quarter.

Tailwinds

  • Gradual improvement in business conditions is anticipated.
  • Declining inflation is expected to stimulate demand.
  • Downward trajectory in interest rates is expected to help stimulate demand.
  • Infrastructure Investment and Jobs Act is expected to boost infrastructure-related project activity.
  • Infrastructure Investment and Jobs Act is expected to lay a stronger foundation for future growth.

Headwinds

  • Import related headwinds are expected to persist in PC strand markets.
  • Further pressure on selling prices is expected.
  • Further pressure on volumes is expected.
  • Further pressure on spreads in the first quarter is expected.
  • Challenges ahead are acknowledged.

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 2024

Historical avgQ4 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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