Insteel (IIIN) Reports Earnings Tomorrow: What To Expect

Steel wire manufacturer Insteel (NYSE:IIIN) will be announcing earnings results this Thursday before market open. Here’s what to look for.

Insteel missed analysts’ revenue expectations last quarter, reporting revenues of $172.7 million, up 7.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Insteel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Insteel’s revenue to grow 6.8% year on year, slowing from the 23.4% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Insteel has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Insteel’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Apogee’s revenues decreased 1.1% year on year, beating analysts’ expectations by 3.4%, and AZZ reported revenues up 6.3%, topping estimates by 3.2%. AZZ traded down 1.9% following the results.

Read our full analysis of Apogee’s results here and AZZ’s results here.

Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Insteel is up 1.6% during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $29.67).

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