What: Shares of carpet tile company Interface, Inc. popped as much as 12% today after the company reported second-quarter earnings.
So what: Sales were up 1% in the quarter to $263.6 million, although on a local currency basis, sales were up 10.4%. But net income jumped an incredible 66% to $21.7 million, or $0.33 per share, which beat analyst expectations by $0.05.
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Management also said it would increase the dividend by a penny to $0.05 per share each quarter.
Now what: The corporate office market is improving steadily, and that's showing in Interface's organic growth numbers. And management has also been able to lower costs per unit, partly because of the increased volumes they're seeing. If the corporate market continues to improve, so should Interface's results, which bodes well for future returns for investors.
The article Why Interface, Inc.'s Shares Jumped 12% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends 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.
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