Insteel Industries Increases Sales but Misses Revenue Estimate

Before you go, we thought you'd like these...
Before you go close icon

Insteel Industries (NAS: IIIN) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Insteel Industries missed on revenues.

Compared to the prior-year quarter, revenue increased significantly, and earnings per share contracted.

Margins grew across the board.

Revenue details
Insteel Industries chalked up revenue of $85 million. The one analyst polled by S&P Capital IQ anticipated sales of $87 million. Sales were 62% higher than the prior-year quarter's $52 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.00. The two earnings estimates compiled by S&P Capital IQ predicted $0.02 per share on the same basis. GAAP EPS were -$0.01 for Q1 compared to -$0.44 per share for the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 5.5%, 580 basis points better than the prior-year quarter. Operating margin was 0.1%, 830 basis points better than the prior-year quarter. Net margin was -0.2%, 1,440 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $95 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $387 million. The average EPS estimate is $0.63.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 226 members out of 243 rating the stock outperform, and 17 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Insteel Industries a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Insteel Industries is outperform, with an average price target of $15.50.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners