Results: Insteel Industries, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Insteel Industries, Inc. (NYSE:IIIN) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Insteel Industries beat earnings, with revenues hitting US$180m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 16%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Insteel Industries' twin analysts are now forecasting revenues of US$716.5m in 2026. This would be a notable 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 72% to US$2.77. In the lead-up to this report, the analysts had been modelling revenues of US$698.7m and earnings per share (EPS) of US$2.81 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

Check out our latest analysis for Insteel Industries

The analysts increased their price target 15% to US$39.00, perhaps signalling that higher revenues are a strong leading indicator for Insteel Industries's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Insteel Industries' growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Insteel Industries to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Insteel Industries you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.