Insteel Industries has formed a candle over candle reversal as swing traders position in the stock for a bounce.
Last quarter the company reported a robust demand environment for its concrete reinforcing products that remain broad-based across all regions and markets. This increased demand allowed the company to raise average selling prices to recover rapidly increasing raw material costs, as well as increased labor and other manufacturing costs. However, the inadequate supply of domestic steel wire rod remains a challenge, restraining the ability to meet customer demand and generating plant operating inefficiencies and increased conversion costs.
Average selling prices last quarter increased 65.4% relative to the prior year. Sequentially, average selling prices increased 10.1% from Q1 2022, which represents the fifth sequential quarter of a price increase of greater than 10%. Shipments last quarter decreased 7.2% from last year due to ongoing domestic wire rod availability issues.
In the last earnings call on April 21, 2022, the company reported that, “Net salesThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... increased to $213.2 million from $139.0 million for the prior year quarter driven by a 65.4% increase in average selling prices and a 7.2% decrease in shipments. The average selling price increase was the result of price increases implemented across all product lines during the quarter to recover rapidly escalating costs, which offset the impact of lower shipments resulting from tight supply conditions for raw materials. On a sequential basis, average selling prices increased 10.1% while shipments increased 8.5%.”
📺 Insteel Industries (IIIN) Stock Price Surges After Earnings Report
TDAmeritrade had on George Tsilis in April 2022 to discuss Insteel Industries excellent quarter. Will the company do it again when they report later this month?
[embedyt] https://www.youtube.com/watch?v=B8_zWUVxJyM[/embedyt]Insteel Industries is one of the nation’s largest manufacturers of steel wire reinforcing products for concrete construction applications. The Company manufactures and markets prestressed concrete strand and welded wire reinforcement, including concrete pipe reinforcement, engineered structural mesh and standard welded wire reinforcement. Insteel’s products are sold primarily to manufacturers of concrete products that are used in nonresidential construction.
📉 $IIIN Stock Chart Technical Analysis
Swing traders are entering the stock ahead of the company’s next earnings announcement on July 21, 2022. The expectation of swing traders is that Insteel Industries stock will bounce to the $39.10 area.
