What: Shares of office carpet supplierInterface, Inc. 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.
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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.
The article Why Shares of Interface, Inc. Dropped 20% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and 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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