Insteel Q1 2023 Earnings Report
Key Takeaways
Insteel Industries reported a decrease in net earnings for Q1 2023 to $11.1 million, or $0.57 per share, compared to $23.1 million, or $1.18 per diluted share, in the same period last year. The results were impacted by lower shipments and the narrowing of spreads between selling prices and raw material costs.
Net earnings decreased to $11.1 million, or $0.57 per share, from $23.1 million, or $1.18 per diluted share, in the prior year quarter.
Net sales decreased 6.5% to $166.9 million from $178.5 million in the prior year quarter.
Shipments decreased 10.0% year-over-year and 12.0% sequentially.
Gross margin narrowed to 10.7% from 23.7% in the prior year quarter.
Insteel
Insteel
Forward Guidance
Insteel expects results to be affected by the consumption of higher cost inventories and weather-related slowdown in construction activity. Customer sentiment remains positive, and the company expects to benefit from infrastructure projects and expanded capacity.
Positive Outlook
- Customer sentiment remains positive.
- Expected benefit from incremental demand from projects funded by the Infrastructure Investment and Jobs Act during the second half of fiscal 2023.
- Positive impact from the completion of several capital projects that will allow Insteel to expand capacity.
- Positive impact from the completion of several capital projects that will reduce the cash cost of production.
Challenges Ahead
- Results will continue to be affected by the consumption of higher cost inventories.
- Results will continue to be affected by the usual weather-related slowdown in construction activity.