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What: Shares of carpet maker Interface jumped as much 14% today after it announced first-quarter earnings.
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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.
The article Why Interface's Shares Popped 14% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends and owns shares of 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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