IIIN - Insteel Industries rises as FQ2 earnings beat expectations
Insteel Industries (IIIN +10.6%) stock jumps as FQ2 net sales increased 53% Y/Y to $213.2M, driven by a 65.4% increase in average selling prices and a 7.2% decrease in shipments. The Co. also benefitted from strong demand for its reinforcing products and incremental price increases to recover the continued escalation in costs. Gross margin widened 510 bps to 26.8%, due to higher spreads between selling prices and raw material costs. Operating activities provided $6.3M of cash compared with providing $15.3M for the prior year quarter due to an increase in net working capital. Insteel ended the quarter debt-free with $69.7M of cash and no borrowings outstanding on its $100M revolving credit facility. Outlook: “Momentum across our business remains positive driven by robust demand from our customer base and price increase initiatives to recover rapidly rising raw material, labor, utility and freight costs. For the balance of our fiscal year, we expect continued strong performance
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Insteel Industries rises as FQ2 earnings beat expectations