IIIN - Insteel goes through meltdown after Q1 results miss stock down ~16%

• Shares of Insteel Industries ( NYSE: IIIN ) fell nearly 16% on Thursday after its first quarter EPS and revenue missed analyst expectations widely, and the company warned its Q2 will be affected by consumption of higher cost inventories and weather-related slowdown.
• The company posted Q1 GAAP EPS of $0.57, missing consensus by 28 cents, and revenue of $166.9M was -6.5% Y/Y, and below estimates by at least $10.49M.
• The company said Q1 shipments into nonresidential construction markets were "adversely affected" by customer destocking, which in turn hurt its sales. Q1 shipments were down 10%.
• Q1 gross margin narrowed to 10.7% vs 23.7% last year, due to the reduction in spreads between selling prices and raw material costs, decrease in shipments and higher operating costs which reflected lower production and inflationary trends, the company said.
• Capex for 2023 is expected to be about $30.0 million.
• IIIN stock was down 26% in 2022.

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