Interface (NASDAQ:TILE) Shares Gap Up on Better-Than-Expected Earnings

Shares of Interface, Inc. (NASDAQ:TILE) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $15.86, but opened at $17.70. Interface shares last traded at $17.28, with a volume of 169,237 shares changing hands.

The textile maker reported $0.24 EPS for the quarter, topping the consensus estimate of $0.12 by $0.12. Interface had a return on equity of 14.95% and a net margin of 3.53%. The firm had revenue of $289.70 million during the quarter, compared to analyst estimates of $284.76 million. During the same period in the prior year, the business posted $0.07 EPS. Interface’s revenue was down 2.1% on a year-over-year basis.

Interface Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 12th. Investors of record on Friday, March 29th were given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.23%. The ex-dividend date of this dividend was Wednesday, March 27th. Interface’s dividend payout ratio is currently 5.26%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on TILE. Barrington Research boosted their price target on shares of Interface from $20.00 to $22.00 and gave the stock an “outperform” rating in a research note on Friday. Truist Financial increased their price target on shares of Interface from $10.00 to $14.00 and gave the company a “hold” rating in a report on Wednesday, February 28th. Finally, TheStreet upgraded shares of Interface from a “c” rating to a “b-” rating in a research report on Tuesday, February 27th.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TILE. Pzena Investment Management LLC increased its holdings in Interface by 65.2% during the third quarter. Pzena Investment Management LLC now owns 3,614,372 shares of the textile maker’s stock valued at $35,457,000 after buying an additional 1,426,749 shares during the period. Pacer Advisors Inc. grew its stake in Interface by 112.4% during the 4th quarter. Pacer Advisors Inc. now owns 2,432,561 shares of the textile maker’s stock valued at $30,699,000 after purchasing an additional 1,287,420 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Interface by 7.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,275,194 shares of the textile maker’s stock worth $28,714,000 after purchasing an additional 165,536 shares during the last quarter. Access Investment Management LLC acquired a new stake in shares of Interface during the fourth quarter worth about $2,024,000. Finally, Wellington Management Group LLP boosted its holdings in shares of Interface by 6.0% in the 3rd quarter. Wellington Management Group LLP now owns 2,496,114 shares of the textile maker’s stock valued at $24,487,000 after acquiring an additional 140,521 shares during the last quarter. 98.34% of the stock is currently owned by institutional investors.

Interface Price Performance

The firm has a 50-day simple moving average of $15.85 and a two-hundred day simple moving average of $12.93. The company has a current ratio of 2.72, a quick ratio of 1.42 and a debt-to-equity ratio of 0.96. The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of 22.88, a P/E/G ratio of 1.01 and a beta of 1.99.

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.