The Gory Details of Insteel Industries' Double Fumble
Insteel Industries (NAS: IIIN) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Insteel Industries missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Insteel Industries notched revenue of $87.0 million. The three analysts polled by S&P Capital IQ anticipated sales of $92.7 million on the same basis. GAAP reported sales were 0.1% higher than the prior-year quarter's $86.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.02. The three earnings estimates compiled by S&P Capital IQ forecast $0.10 per share on the same basis. GAAP EPS of $0.01 for Q2 were 93% lower than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.3%, 700 basis points worse than the prior-year quarter. Operating margin was 0.7%, 700 basis points worse than the prior-year quarter. Net margin was 0.3%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $104.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $386.4 million. The average EPS estimate is $0.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 221 members out of 239 rating the stock outperform, and 18 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 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.
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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.