The Gory Details of Interface's Double Fumble

Seth Jayson, The Motley Fool
Updated

Interface (NAS: IFSIA) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 1 (Q2), Interface missed estimates on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
Interface booked revenue of $254.6 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $265.8 million on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $267.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The nine earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.16 for Q2 were 20% lower than the prior-year quarter's $0.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.2%, 220 basis points worse than the prior-year quarter. Operating margin was 8.7%, 110 basis points worse than the prior-year quarter. Net margin was 4.0%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $280.8 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $0.73.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interface is outperform, with an average price target of $15.25.

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The article The Gory Details of Interface's Double Fumble originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool 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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