Insteel Q3 sales rise more than expected on higher shipments, prices

Overview

• Insteel fiscal Q3 net sales rose 23.4%, beating analyst expectations, per LSEG data

• Net earnings increased to $15.2 mln, driven by higher shipments and pricing

• Gross profit improved significantly, reflecting better market conditions and pricing

Outlook

• Company faces sourcing challenges due to reduced domestic steel wire rod capacity

• Insteel turns to international markets to ease supply constraints

• Company sees sharply escalating wire rod prices impacting costs

• Insteel remains confident in business outlook despite challenges

Result Drivers

• HIGHER SHIPMENTS - Driven by acquisitions and improved demand in construction markets

• PRICING ACTIONS - Implemented to recover escalating raw material and operating costs

• SOURCING CHALLENGES - Reduced domestic capacity and increased tariffs impacted production schedules

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Insteel Industries Inc is $39.00, about 1.2% above its July 16 closing price of $38.52

Press Release: ID:nBw9LDmz2a