Insteel Industries Down 0.07% To $27.70 After Earnings Miss

Thursday, April 20, 2023 - Insteel Industries (IIIN) reported downside earnings and revenues today.

Wall Street earnings per share (EPS) projections for Insteel Industries were at $0.46. The company missed those estimates with an EPS of $0.26. The earnings per share of $0.26 (which represents a -43% EPS surprise) led to the company's profits falling 87% compared to last year when the firm reported an EPS of $1.99. The decline in Insteel Industries's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus analyst estimates were at $170.8 million. The Industrials company missed on those expectations for its second quarter with revenue of $159.1 million, a negative revenue surprise of $11.8 million (7%). The firm managed negative 25% growth year-over-year due to Insteel Industries reporting quarterly revenue of $213.2 million in its year-ago quarter. Insteel Industries achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 0.07% to $27.70 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Insteel Industries a Bearish Sentiment Rank from InvestorsObserver.

Insteel Industries has performed a little below average during the past few months. Before the report, Insteel Industries received a Long-Term Technical Rank by InvestorsObserver of 31, putting it in the bottom half of stocks. The firm set a 52-week low on October 21, 2022 at $24 and set a 52-week high on May 4, 2022 at $47.7.

Insteel Industries Inc manufactures steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including ESM, concrete pipe reinforcement, and standard welded wire reinforcement. The company's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Its concrete reinforcing products consist of two product lines: PC strand and WWR. Insteel generates its geographical revenue from the United States.