The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Insteel Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew.
Margins increased across the board.
Insteel Industries logged revenue of $85.9 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $80.5 million on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $84.8 million.
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 $0.13. The three earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. GAAP EPS were $0.13 for Q1 against -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.0%, 450 basis points better than the prior-year quarter. Operating margin was 4.4%, 430 basis points better than the prior-year quarter. Net margin was 2.8%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $85.4 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $374.9 million. The average EPS estimate is $0.61.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 216 members out of 233 rating the stock outperform, and 17 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 $14.50.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.