Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of carpet maker Interface (TILE +1.11%) jumped as much 14% today after it announced first-quarter earnings.
So what: Revenue in the quarter increased 8.2% from a year ago to $236.9 million, but if it weren't for negative currency impacts the increase would have been 17%. On the bottom line, net income more than tripled to $12.3 million, or $0.19 per share, $0.04 ahead of estimates.
Now what: Demand is picking up for Interface around the world, with the Americas leading the way with a 17% gain in revenue. On the cost side of equation, management said that higher throughput has helped margins and that should be sustainable long-term.
The quarter was certainly solid, and Interface seems well set up for the future, but with shares trading at 60 times trailing earnings and 19 times 2016 earnings estimates, I just don't see enough value for me to jump into shares today.
