The 10-second takeaway
For the quarter ended March 31 (Q1), Interface missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share grew.
Gross margins increased, operating margins contracted, net margins grew.
Interface logged revenue of $210.4 million. The eight analysts polled by S&P Capital IQ predicted a top line of $224.1 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $232.8 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 $0.08. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. Non-GAAP EPS of $0.08 for Q1 were 20% lower than the prior-year quarter's $0.10 per share. GAAP EPS were $0.11 for Q1 against -$0.09 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 33.9%, 120 basis points better than the prior-year quarter. Operating margin was 6.7%, 50 basis points worse than the prior-year quarter. Net margin was 3.3%, 580 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $245.2 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 144 members out of 162 rating the stock outperform, and 18 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $20.25.
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