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.
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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
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.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
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.
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.
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.
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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 of Motley 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.