Insteel Industries Inc. (NASDAQ:IIIN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.20%.
Insteel Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 900% to $0.2 in the quarter versus EPS of $0.02 in the year-earlier quarter.
Revenue: Decreased 4.75% to $82.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Insteel Industries Inc. reported adjusted EPS income of $0.2 per share. By that measure, the company beat the mean analyst estimate of $0.12. It missed the average revenue estimate of $87.85 million.
Quoting Management: “As we move into the second half of the year, the most recent macro data implies that conditions in our construction end-markets are gradually improving and customer sentiment appears to be on the rise,” commented H.O. Woltz III, Insteel’s president and CEO. “We expect that our financial results will be favorably impacted by the usual seasonal upturn in demand together with our ongoing performance improvement initiatives and the increasing contributions from the Ivy acquisition.
“We are pleased with the progress of our engineered structural mesh expansion projects, which are on schedule and on budget. The new production line at our Texas facility and the production line that was relocated to our Missouri facility were started up during the quarter. We expect the second new production line that is going into our North Carolina facility will be commissioned late in the current quarter and ramp up during the fourth quarter. We believe these investments will serve to strengthen our market leadership position and further our penetration of the rebar market by reducing lead times and expanding the range of concrete reinforcing solutions that we can offer.”
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