Insteel Q4 Earnings Fall to $0.40/Share as Gross Margin Halves to 10.0%
IIIN sits 24% above its 52-week low of $24.35.
Summary
Insteel earned $7.7 million, or $0.40 per share, in its fiscal fourth quarter, down from $14.6 million, or $0.74, a year earlier. Sales rose 17.9% to $209.3 million on a 6.6% increase in average selling prices and 10.6% higher shipments, but the extra week in the fiscal calendar did much of the volume work. The problem is margin: gross profit fell to $21.0 million and gross margin compressed to 10.0% from 16.1% as wire rod, freight and other costs outran price increases. Full-year net earnings dropped to $29.5 million, or $1.51 per diluted share, from $41.0 million, or $2.10, extending the cost squeeze flagged in the Q3 10-Q. Management guides fiscal 2027 capex up to roughly $30.0 million for engineered structural mesh expansion and PST investments, and expects the previously announced welded wire consolidation to deliver substantial cost reductions. The 10:00 a.m. ET call is the next checkpoint on pricing and cost recovery.
At the time of this announcement, IIIN was trading at $30.30 on NYSE in the Manufacturing sector, with a market capitalization of approximately $588.3M. The 52-week trading range was $24.35 to $38.45. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: BusinessWire.