Why Insteel Industries Stock Plummeted Today

Insteel Industries (NYSE: IIIN) stock got hit with a big pullback Thursday following the publication of the company's latest quarterly earnings. The steel products specialist's share price sank 19.3% in the daily session.

Before the market opened this morning, Insteel published results for the fourth quarter of its last fiscal year, ended Sept. 27. Sales and earnings for the period fell short of the market's expectations, and management also issued some unencouraging guidance. After today's big sell-off, Insteel's stock gain across 2025 has been cut to approximately 12%.

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Insteel stock sinks as quarterly results come up short

Insteel reported earnings per share of $0.74 on sales of $177.4 million in fiscal Q4. For comparison, the average Wall Street analyst estimate had called for per-share earnings of $0.78 on sales of approximately $180.1 million. Insteel's sales were still up approximately 32% year over year, thanks to an increase in sales volumes and unit prices, but investors were still expecting stronger performance in the period.

What's next for Insteel?

Insteel expects to see an effective tax rate of 23.5% in the current fiscal year and is also guiding for capital expenditures of approximately $20 million in the period. The company plans to devote capital expenditures to expanding in new product categories, realizing efficiencies to reduce production costs, and improving its information systems. Management expects that demand will continue to recover this year, and the near-term inventory buildup in response to tariff dynamics will see strong sell-through as the fiscal year progresses.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.