Insteel Industries Stock Plummets on Earnings Miss and Weak Guidance

Insteel Industries (IIIN) shares tumbled 19.3% Thursday after the steel products manufacturer reported fiscal Q4 results that fell short of analyst expectations. The company posted earnings of $0.74 per share on $177.4 million in revenue, missing consensus estimates of $0.78 and $180.1 million respectively.

While sales showed a 32% year-over-year increase driven by higher volumes and prices, investors punished the stock for the earnings miss and cautious forward guidance. Management projected a 23.5% effective tax rate and $20 million in capital expenditures for the coming fiscal year, with plans to expand product categories and improve operational efficiency.

The dramatic sell-off erased most of Insteel's 2025 gains, leaving the stock up just 12% year-to-date. Market participants appear concerned about the company's ability to maintain growth momentum amid challenging macroeconomic conditions for industrial manufacturers.