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Mar 30, 2024
Insteel Q2 2024 Earnings Report
Insteel Industries reported results for the second quarter of fiscal year 2024, with increased net earnings compared to the same period last year, driven by widening spreads between selling prices and raw material costs.
Key Takeaways
Insteel Industries reported net earnings of $6.9 million, or $0.35 per diluted share, for the second quarter of fiscal 2024. Net sales decreased by 19.9% to $127.4 million. The company benefited from widening spreads between selling prices and raw material costs.
Net earnings increased to $6.9 million, or $0.35 per diluted share.
Net sales decreased to $127.4 million.
Gross profit increased to $15.7 million, representing 12.3% of net sales.
The company had a net cash balance of $83.9 million and no debt outstanding as of March 30, 2024.
Forward Guidance
Insteel anticipates growing momentum across its business driven by the seasonal upturn in construction activity, continued recovery in demand from customers, and an improving macroeconomic outlook. The company also remains optimistic about the expected growth in infrastructure construction.
Positive Outlook
- Improving business conditions with inventories appearing to have corrected.
- Seasonal forces causing a ramp-up in operating hours at most plants.
- Stabilization of selling prices.
- Consumption of lower cost inventory.
- Expected growth in infrastructure construction.
Challenges Ahead
- Shipment growth is required for substantially improved financial performance.
- Competitive pressure.
- Weakness in the commercial construction market.
- Adverse weather conditions that reduced construction activity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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