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Sep 28, 2024
Insteel Q4 2024 Earnings Report
Insteel's Q4 2024 financial performance reflected a decrease in net sales and earnings, impacted by narrower spreads and lower shipments.
Key Takeaways
Insteel Industries reported net sales of $134.3 million and net income of $4.7 million, or $0.24 per share, for the fourth quarter of fiscal 2024. The results were negatively impacted by narrower spreads between selling prices and raw material costs, along with lower shipments.
Net sales decreased by 14.7% to $134.3 million due to lower average selling prices and a decline in shipments.
Net income was $4.7 million, or $0.24 per share, compared to $5.6 million, or $0.29 per share, in the prior year quarter.
Gross margin increased slightly to 9.1% from 8.9% in the prior year quarter, primarily due to lower unit manufacturing costs.
The company ended the quarter with a net cash balance of $111.5 million and no debt outstanding.
Forward Guidance
Insteel anticipates a gradual improvement in business conditions across its markets in fiscal year 2025, expecting that declining inflation and the downward trajectory in interest rates will help stimulate demand. However, import-related headwinds are expected to persist in PC strand markets, putting further pressure on selling prices, volumes and spreads in the first quarter.
Positive Outlook
- Gradual improvement in business conditions is anticipated.
- Declining inflation is expected to stimulate demand.
- Downward trajectory in interest rates is expected to help stimulate demand.
- Infrastructure Investment and Jobs Act is expected to boost infrastructure-related project activity.
- Infrastructure Investment and Jobs Act is expected to lay a stronger foundation for future growth.
Challenges Ahead
- Import related headwinds are expected to persist in PC strand markets.
- Further pressure on selling prices is expected.
- Further pressure on volumes is expected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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