The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Interface missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Gross margins contracted, operating margins grew, net margins shrank.
Interface reported revenue of $242.9 million. The seven analysts polled by S&P Capital IQ hoped for sales of $254.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $273.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The eight earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS were -$0.09 for Q3 against $0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 50 basis points worse than the prior-year quarter. Operating margin was 9.8%, 50 basis points better than the prior-year quarter. Net margin was -2.4%, 690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $262.4 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $987.5 million. The average EPS estimate is $0.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 102 members out of 120 rating the stock outperform, and 18 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Interface a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interface is outperform, with an average price target of $15.58.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Interface. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.