Insteel Industries (IIIN) Tops Q3 EPS by 17c

Insteel Industries (NASDAQ: IIIN) reported Q3 EPS of $0.34, $0.17 better than the analyst estimate of $0.17. Revenue for the quarter came in at $122 million versus the consensus estimate of $115.45 million.

Outlook:

"While we are pleased with the robust market conditions through our third quarter and expect the fourth quarter to remain strong, our visibility into fiscal 2021 is clouded by the uncertainty surrounding the impact of COVID-19 on our markets," commented H.O. Woltz III, Insteel's President and CEO. "We are particularly concerned about the potential impact of future funding constraints on infrastructure projects and the uncertain economic environment on activity in the private non-residential construction market. Despite these factors, we believe we are favorably positioned to confront any market challenges and capitalize on strategic growth opportunities that may arise.

We are pleased with the execution of our plant closure and integration plans associated with the STM acquisition, which remain on schedule. We are currently proceeding with the initial relocation and upgrading of equipment that will be redeployed to other facilities, which is expected to be completed by the end of the second fiscal quarter of 2021. We remain confident that the integration of the STM assets with our PC strand plants will provide meaningful operating leverage for the company.

We expect that our markets susceptible to import competition will continue to be unfavorably impacted by pricing pressure. On April 16, 2020 a group of domestic producers filed trade cases against 15 countries exporting PC strand to U.S. markets, and on June 30, 2020 a separate group of domestic producers of standard welded wire reinforcing products filed a trade case against Mexico. We believe the facts supporting these cases are strong and that we will be successful in addressing violations of U.S. trade law by these countries."

For earnings history and earnings-related data on Insteel Industries (IIIN) click here.

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