Insteel Q3 2021 Earnings Report
Key Takeaways
Insteel Industries reported a strong third quarter with net sales increasing by 31.8% to $160.7 million and net earnings increasing to $18.4 million, driven by higher selling prices and strong demand.
Net earnings increased to $18.4 million, or $0.94 per diluted share, compared to $6.7 million, or $0.34 per diluted share, in the same period last year.
Net sales increased 31.8% to a record $160.7 million from $122.0 million in the prior year quarter.
Average selling prices increased by 32.9%, while shipment volumes decreased by 1.0%.
Gross margin widened to 19.6% from 12.1% in the prior year quarter.
Insteel
Insteel
Forward Guidance
Insteel expects favorable demand and strong financial performance for its fourth fiscal quarter, but is concerned about ongoing supply constraints and escalating raw material prices.
Positive Outlook
- Continued strength in private and public non-residential construction markets.
- Swift rebound in non-residential construction market leading indicators to almost record levels.
- Consistent levels of public construction spending.
- Confidence that demand will remain robust into 2022.
Challenges Ahead
- Ongoing supply constraints.
- Sharply escalating raw material prices in both domestic and international markets.
- Heightened uncertainty for customers.
- Unfavorable impact on operations.