Insteel reports Q1 EPS 57c, consensus 85c

Reports Q1 revenue $166.9M, consensus $177.39M. "Following a year of record financial results, the first quarter of fiscal 2023 was a period of transition as our supply chain recovers from unprecedented constraints of the prior year," commented H.O. Woltz III, CEO. "As we move into Q2, we expect our results will continue to be affected by the consumption of higher cost inventories along with the usual weather-related slowdown in construction activity. Throughout FY22, we mentioned the favorable impact on gross margin of steadily increasing steel prices matched against lower cost inventories under our first-in, first-out accounting methodology. When steel prices decline, we experience the flipside of the FIFO impact. Our accounting methodology does not diminish the favorable outlook for nonresidential construction markets or our financial performance once the inventory pipeline has normalized. Customer sentiment remains positive, and we expect to benefit from incremental demand from projects funded by the Infrastructure Investment and Jobs Act during the second half of FY23. Additionally, we should be positively impacted by the completion of several capital projects that will allow us to expand our capacity and reduce the cash cost of production."