Insteel Industries, Inc. (IIIN)

[benfrankledger]

Between the variables that go into estimating end-market demand, competitive pricing actions, and the lag in price realization due to inventory, this is a challenging company to model in the best of times, and I think you have to settle for “generally right” as opposed to spot-on accuracy. As it concerns revenue, I do expect Insteel to still see some pricing tailwind benefits, but I believe pressure on volumes will emerge and push revenue growth down to the mid-single-digits. I expect pressure on both volume and pricing in 2020, and I expect revenue to contract before rebounding in 2021 and 2022.