Interface (NASDAQ:TILE) Shares Gap Up on Strong 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.

The textile maker reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates of $0.47 by $0.13. Interface had a return on equity of 18.97% and a net margin of 7.08%. The company had revenue of $375.52 million during the quarter, compared to analyst estimates of $360.57 million. During the same quarter last year, the company earned $0.40 EPS. The firm's revenue for the quarter was up 8.3% on a year-over-year basis.

Interface Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 13th. Shareholders of record on Friday, May 30th were issued a $0.01 dividend. The ex-dividend date of this dividend was Friday, May 30th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.2%. Interface's dividend payout ratio (DPR) is presently 2.47%.

Wall Street Analysts Forecast Growth

TILE has been the subject of a number of research analyst reports. Barrington Research lifted their target price on Interface from $30.00 to $32.00 and gave the stock an "outperform" rating in a report on Friday. Wall Street Zen raised Interface from a "hold" rating to a "buy" rating in a report on Saturday, May 10th.

Insider Buying and Selling

In related news, VP James Poppens sold 19,474 shares of the company's stock in a transaction on Thursday, May 29th. The stock was 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 in the company, valued at approximately $2,621,059.88. This represents a 13.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 2.30% of the company's stock.

Institutional Trading of Interface

A number of hedge funds have recently bought and sold shares of the company. IFP Advisors Inc grew its holdings in Interface by 2,695.2% during the second quarter. IFP Advisors Inc now owns 1,174 shares of the textile maker's stock valued at $25,000 after purchasing an additional 1,132 shares during the period. Huntington National Bank bought a new stake in Interface during the fourth quarter valued at about $28,000. Virtus Fund Advisers LLC bought a new stake in Interface during the fourth quarter valued at about $48,000. Versant Capital Management Inc grew its holdings in Interface by 49.6% during the first quarter. Versant Capital Management Inc now owns 2,458 shares of the textile maker's stock valued at $49,000 after purchasing an additional 815 shares during the period. Finally, Virtus Advisers LLC bought a new stake in Interface during the first quarter valued at about $57,000. Hedge funds and other institutional investors own 98.34% of the company's stock.

Interface Stock Up 0.9%

The company has a fifty day simple moving average of $20.99 and a 200-day simple moving average of $20.68. The company has a quick ratio of 1.59, a current ratio of 2.88 and a debt-to-equity ratio of 0.53. The firm has a market cap of $1.49 billion, a P/E ratio of 15.72, a price-to-earnings-growth ratio of 1.04 and a beta of 2.01.

About Interface

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.