Insteel Industries (IIIN) came out with quarterly earnings of $0.24 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of steel wire reinforcing for the concrete and construction industry would post earnings of $0.38 per share when it actually produced earnings of $0.34, delivering a surprise of -10.53%. Over the last four quarters, the company has su ...

Financial Data and Key Metrics Changes - Insteel's net earnings for Q3 2024 decreased to $6.6 million or $0.34 per share, down from $10.6 million or $0.54 per share a year ago [3] - Net sales for the quarter declined 12% to $145.8 million, driven by a 16.3% decrease in average selling prices, partially offset by a 5.1% increase in shipments [3] - Gross profit decreased to $15.4 million from $20.4 million in the prior year quarter, with gross margin narrowing to 10.6% from 12.3% [38] - Cash flow from operations generated $18.7 million, primarily due to net earnings and a reduction in net working capital [5] Business Line Data and Key Metrics Changes - Shipments for the welded wire reinforcement business improved, but backlogs lengthened due to earlier weak order entry and shipments [17] - Average selling prices fell by 5.3% sequentially while shipments rose 20.8%, indicating competitive pricing pressures [37] - SG&A expense remained unchanged at $7.9 million, representing 5.4% of net sales compared to 4.8% a year ago [14] Market Data and Key Metrics Changes - The US Department of Commerce reported a 6.4% increase in total construction spending on a seasonally adjusted annual basis [6] - The Architectural Billings Index (ABI) declined to 42.4, indicating a decrease in billings and a slowdown in new projects [15] - The Dodge Momentum Index rose by 10.4% in June, indicating a 7% year-over-year increase in non-residential building projects entering the planning phase [15] Company Strategy and Development Direction - The company is focused on maximizing shipments and optimizing costs while pursuing growth opportunities both organically and through acquisitions [9] - Capital expenditures for 2024 have been scaled back to approximately $25 million, influenced by investments in new production lines [18] - The company is optimistic about the impact of the Infrastructure Investment and Jobs Act (IIJA) on future demand, despite current challenges [42] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions are recovering, with expectations for higher operating rates, lower costs, and improved revenue and margins [2] - The company is monitoring substantial risks related to the future performance of the US economy [9] - Management expressed confidence that the investments made will yield returns greater than the cost of capital [81] Other Important Information - The company ended the quarter with $97.7 million in cash and was debt-free, providing financial flexibility [39] - The effective tax rate for the quarter rose to 24.7% from 22% a year ago, largely due to a discrete tax item [14] Q&A Session Summary Question: Will the Infrastructure Act eventually benefit Insteel, and when might that happen? - Management does not expect to see projects clearly labeled as funded by the IIJA, indicating that the impact may not be immediately visible [22][48] Question: How have customers changed project timing in anticipation of interest rate cuts? - Some customers have delayed project starts due to higher costs and financing rates, indicating a cautious approach [27] Question: What is the outlook for residential versus private commercial construction? - The outlook for residential construction appears more bullish compared to private commercial, with potential support from interest rate reductions [26][49] Question: How is the company addressing labor market challenges? - The company is facing difficulties in hiring and retaining qualified workers, which is a common issue across various labor markets [46] Question: How does the company view the impact of potential changes in administration on Section 232 tariffs? - Management believes that the current situation regarding tariffs is a result of a mistake and is optimistic about rectifying it, regardless of the administration in place [70]

Our cash flows and earnings are subject to fluctuations resulting from changes in commodity prices, interest rates and foreign exchange rates. We manage our exposure to these market risks through internally established policies and procedures and, when appropriate, the use of derivative financial instruments. We do not use financial instruments for trading purposes and are not a party to any leveraged derivatives. We monitor our underlying market risk exposures on an ongoing basis and believe we can modify ...

Insteel Industries (IIIN) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. Insteel Industries shares have lost about 15.8% since the beginning of the year versus the S&P 500's gain of 17.2%. Ahead of this earnings release, the estimate revisions trend for Insteel Industries: unfavorable. While the magnitude and direction of estimate revisio ...

Exhibit 99.1 NEWS RELEASE Third Quarter 2024 Highlights Third Quarter 2024 Results Net earnings for the third quarter of fiscal 2024 decreased to $6.6 million, or $0.34 per share, from $10.6 million, or $0.54 per share, for the same period a year ago. Despite higher shipments, Insteel's third quarter results were unfavorably impacted by narrower spreads between selling prices and raw material costs relative to the prior year quarter. FOR IMMEDIATE RELEASE Contact: Scot Jafroodi Vice President, Chief Financi ...

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. One stock to keep an eye on is Insteel Industries (IIIN) . IIIN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Thi ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics a ...

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies ...

Investors might want to bet on Insteel Industries (IIIN) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individua ...

Financial Data and Key Metrics Changes - Net earnings for Q2 2024 increased to $6.9 million from $5.1 million a year ago, with earnings per share rising to $0.35 from $0.26 [4] - Shipments for the quarter rose 1.9% from Q1 but fell 3.2% year-over-year [4] - Gross profit increased by $2.4 million to $15.7 million, with gross margin expanding to 12.3% from 8.3% [6][7] - Cash flow from operations decreased to $1.4 million from $46.6 million last year [10] - SG&A expenses increased to $7.9 million, or 6.2% of net sales, from $7.5 million, or 4.7% of net sales last year [8] Business Line Data and Key Metrics Changes - Average selling prices (ASP) increased by 2.7% sequentially from Q1 but decreased by 17.3% year-over-year [5][6] - The recovery in gross profit was partially offset by lower shipments, with the spread between average selling prices and raw material costs benefiting from a selling price increase [7] Market Data and Key Metrics Changes - Total construction spending in the U.S. increased by approximately 11% year-over-year, with nonresidential construction spending up by 14% [12] - Architectural Billings Index (ABI) fell to 43.6 in March, indicating weak demand [12] - The Dodge Momentum Index, which tracks nonresidential building projects, decreased by 8.6% from February [12] Company Strategy and Development Direction - The company is optimistic about demand driven by market fundamentals and capital investments made in recent years [13] - Capital expenditures for 2024 are expected to be around $30 million, influenced by the addition of new production lines [17] - The company is actively pursuing actions to address import competition and is working with the administration regarding the Section 232 tariff [15][27] Management's Comments on Operating Environment and Future Outlook - Management noted that adverse conditions seem to have run their course, with rising demand expected [13] - The company is monitoring the U.S. economy closely and is well-positioned to maximize shipments and optimize costs [18] - There is optimism regarding the Infrastructure Investment and Jobs Act, although specific project impacts are yet to be seen [16] Other Important Information - The company ended the quarter with $83.9 million in cash and no borrowings on its revolving credit facility, providing ample liquidity [11] - The company repurchased $300,000 worth of common equity during the quarter [11] Q&A Session Summary Question: Clarification on pricing and acceptance of price increases - Management indicated that the price increase was motivated by rising steel costs, but the commitment to collect the increase waned during the quarter [20] Question: Trends in shipments and ASPs - Management noted that while ASPs are expected to remain decent, the situation varies across different markets [21] Question: Differences in trends between non-residential and residential markets - Management stated that both markets are showing parallel trends, with competitive pressures affecting commodity-like products [22] Question: Recovery in shipments and contribution from capacity increases - Most of the recent shipment increases are attributed to a recovery in the underlying business rather than solely from capital investments [24] Question: Infrastructure improvements and contribution margins - Management expects that as volumes return, pricing power will increase, leading to reduced operating costs [25] Question: Impact of PC strand imports and Section 232 tariff - Management is actively pursuing actions against import competition and is advocating for the inclusion of PC strand under the Section 232 tariff [27][34]