Insteel Industries Earnings: Here’s Why Investors Don’t Like These Results
Insteel Industries Inc. (NASDAQ:IIIN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.52%.
Insteel Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 280% to $0.19 in the quarter versus EPS of $0.05 in the year-earlier quarter.
Revenue: Rose 3.63% to $97 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Insteel Industries Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company missed the mean analyst estimate of $0.27. It beat the average revenue estimate of $95.1 million.
Quoting Management: “Conditions in our construction end-markets have continued to gradually improve from historically depressed levels, although we have yet to see a significant pick up in momentum,” commented H.O. Woltz III, Insteel’s president and CEO. “We believe the rate of recovery will remain modest until there is more meaningful and sustained growth in the overall economy and in the employment market.”
Key Stats (on next page)…
Revenue increased 17.05% from $82.87 million in the previous quarter. EPS decreased 5% from $0.20 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate has moved up from a profit of $0.84 to a profit of $0.86 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)