Interface (NASDAQ:TILE) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Interface, Inc. reported $0.60 earnings per share (EPS) for the quarter, outperforming the consensus estimate of $0.47, which led the stock to open at $23.97, significantly up from its previous close of $20.62.
• The company declared a quarterly dividend of $0.01 per share, with an annualized basis of $0.04 and a yield of 0.2%.
• Analysts have upgraded Interface's stock, with Wall Street Zen raising it from a "hold" to a "buy" rating and Barrington Research issuing a target price of $30.00.

Interface, Inc. (NASDAQ:TILE - Get Free Report) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $20.62, but opened at $23.97. Interface shares last traded at $24.42, with a volume of 159,703 shares trading hands.

The textile maker reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.13. Interface had a net margin of 6.48% and a return on equity of 17.73%. During the same quarter last year, the business earned $0.40 earnings per share. The firm's revenue for the quarter was up 8.3% compared to the same quarter last year.

Interface Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Friday, May 30th were issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date was Friday, May 30th. Interface's payout ratio is presently 2.76%.

Analyst Ratings Changes

A number of equities research analysts have commented on TILE shares. Wall Street Zen raised shares of Interface from a "hold" rating to a "buy" rating in a research report on Saturday, May 10th. Barrington Research reaffirmed an "outperform" rating and issued a $30.00 target price on shares of Interface in a research report on Tuesday, July 22nd.

Insider Activity

In other news, VP James Poppens sold 19,474 shares of the business's stock in a transaction on Thursday, May 29th. The shares were sold at an average price of $20.14, for a total transaction of $392,206.36. Following the completion of the sale, the vice president owned 130,142 shares of the company's stock, valued at $2,621,059.88. The trade was a 13.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Interface

A number of hedge funds have recently modified their holdings of the business. National Bank of Canada FI boosted its holdings in Interface by 13.3% in the 4th quarter. National Bank of Canada FI now owns 3,850 shares of the textile maker's stock worth $94,000 after buying an additional 451 shares during the period. Sei Investments Co. boosted its holdings in Interface by 0.9% in the 1st quarter. Sei Investments Co. now owns 64,897 shares of the textile maker's stock worth $1,288,000 after buying an additional 568 shares during the period. Ethic Inc. boosted its holdings in Interface by 6.2% in the 2nd quarter. Ethic Inc. now owns 11,797 shares of the textile maker's stock worth $249,000 after buying an additional 686 shares during the period. Versant Capital Management Inc boosted its holdings in Interface by 49.6% in the 1st quarter. Versant Capital Management Inc now owns 2,458 shares of the textile maker's stock worth $49,000 after buying an additional 815 shares during the period. Finally, Bank of Montreal Can boosted its holdings in Interface by 4.2% in the 4th quarter. Bank of Montreal Can now owns 21,870 shares of the textile maker's stock worth $533,000 after buying an additional 891 shares during the period. Institutional investors own 98.34% of the company's stock.

Interface Stock Performance

The firm has a market cap of $1.44 billion, a PE ratio of 16.84, a PEG ratio of 0.87 and a beta of 1.97. The company has a current ratio of 2.76, a quick ratio of 1.42 and a debt-to-equity ratio of 0.59. The firm's 50 day simple moving average is $20.78 and its 200 day simple moving average is $20.71.

Interface Company Profile

Interface, Inc designs, produces, and sells modular carpet products primarily worldwide. The company operates in two segments, Americas (AMS), and Europe, Africa, Asia and Australia (EAAA). The company offers modular carpets under the Interface and FLOR brand names; luxury vinyl tiles; carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; and modular resilient flooring products.

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