The 10-second takeaway
For the quarter ended March 30 (Q2), Insteel Industries missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew significantly.
Margins grew across the board.
Insteel Industries recorded revenue of $82.9 million. The three analysts polled by S&P Capital IQ foresaw revenue of $87.7 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 $0.20. The three earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.20 for Q2 were much higher than the prior-year quarter's $0.01 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 13.3%, 700 basis points better than the prior-year quarter. Operating margin was 7.0%, 630 basis points better than the prior-year quarter. Net margin was 4.5%, 420 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 $0.23.
Next year's average estimate for revenue is $376.3 million. The average EPS estimate is $0.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 217 members out of 234 rating the stock outperform, and 17 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $20.00.
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