Insteel Industries (IIIN) Misses Q4 EPS by 7c, Revenues Miss

Insteel Industries (NASDAQ: IIIN) reported Q4 EPS of $0.49, $0.07 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $121.4 million versus the consensus estimate of $130.38 million.

Outlook

"As we head into fiscal 2019, the outlook for our markets remains positive," commented H.O. Woltz III, Insteel\'s president and CEO. "The leading indicators and industry forecasts for nonresidential building construction are signaling modest growth in the coming year. We believe the infrastructure-related portion of our business will benefit from increased federal funding through the FAST Act and supplemental measures together with higher state and local spending supported by various initiatives in many of our markets. Residential construction is also expected to strengthen driven by favorable employment and demographic trends.

"Business conditions are becoming increasingly challenging, however, due to the Administration\'s Section 232 imported steel tariff program, which has driven domestic prices for our primary raw material, hot-rolled steel wire rod, well above world market levels. Considering that no tariffs were placed on imports of downstream products such as welded wire reinforcement and PC strand, we expect a surge in low-priced import competition that results in market share erosion and margin compression for domestic producers. We are engaged with the Administration and Congress to arrive at a solution that addresses the unsustainable competitive environment that has developed in the wake of the tariff program. We have also intensified our focus on operational excellence across all of our commercial and manufacturing activities and will continue to pursue strategic investments that strengthen our market and cost leadership positions."

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

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