What: Shares of office carpet supplier Interface, Inc. (NASDAQ:TILE) dropped 20% today after the company reported third-quarter earnings.
So what: Revenue increased 9.7% from a year ago to $276.6 million on a currency-neutral basis, but was just $254.7 million in U.S. dollars, and earnings per share was $0.31. Earnings hit estimates but revenue fell well short of the $264.9 million Wall Street expected. Revenue has been on the mind of investors this quarter, and even a small miss on the top line has sent investors running for the door.
Now what: Without currency fluctuations, this would look like a great quarter for Interface. But the company is dealing with the same challenges most international companies are today, due to a very strong dollar. Still, earnings have more than doubled in the first nine months of the year and at least on a local currency basis growth looks to be continuing. I don't see a reason to abandon ship today, and for investors looking at the long-term potential of Interface this could be a nice buying opportunity.