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Oct 01, 2022
Insteel Q4 2022 Earnings Report
Insteel Industries reported results for the fourth quarter and fiscal year ended October 1, 2022.
Key Takeaways
Insteel Industries reported a net earnings of $24.3 million for Q4 2022, or $1.24 per diluted share, compared to $25.2 million, or $1.28 per share, in the same period a year ago. Net sales increased 21.4% to $208.0 million from $171.3 million in the prior year quarter.
Net earnings for the fourth quarter of fiscal 2022 were $24.3 million, or $1.24 per diluted share.
Net sales increased 21.4% to $208.0 million.
Average selling prices increased 26.1% from the prior year quarter.
Shipments decreased 3.7% due to weakness in residential construction and inventory management measures.
Insteel
Insteel
Forward Guidance
Insteel remains optimistic about demand in non-residential construction markets, which represent a substantial majority of sales. Weakness in the residential construction markets and heightened uncertainty regarding the future direction of the overall economy are areas being closely monitored. The company's strong balance sheet and flexible operating model position it to navigate any softness it may encounter.
Positive Outlook
- Optimistic about demand in non-residential construction markets.
- Backlogs across customer base remain solid.
- Third-party non-residential construction indices point to continued expansion.
- Incremental demand from projects funded by the Infrastructure Investment and Jobs Act should materialize during 2023.
- Strong balance sheet and flexible operating model.
Challenges Ahead
- Weakness in the residential construction markets.
- Heightened uncertainty regarding the future direction of the overall economy.
- Raw material shortfalls.
- Labor availability challenges.
- Difficult operating conditions experienced at times over the last twelve months.