The 10-second takeaway
For the quarter ended June 29 (Q3), Insteel Industries met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins grew across the board.
Insteel Industries reported revenue of $96.9 million. The three analysts polled by S&P Capital IQ expected revenue of $96.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The three earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.18 for Q3 were 260% higher than the prior-year quarter's $0.05 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 11.3%, 450 basis points better than the prior-year quarter. Operating margin was 5.7%, 400 basis points better than the prior-year quarter. Net margin was 3.4%, 240 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $99.8 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $365.1 million. The average EPS estimate is $0.86.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 212 members out of 229 rating the stock outperform, and 17 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Insteel Industries a green thumbs-up, and eight 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 $29.00.
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