Interface, a carpet tile company, saw its stock price plummet 8.92% during pre-market trading on Tuesday. The sharp decline came after the company reported its fourth-quarter earnings and provided guidance for the first quarter of 2025.
According to the earnings report, Interface expects first-quarter revenue to be in the range of $290 million to $300 million, falling short of analysts' expectations of $305.3 million. This weaker-than-anticipated revenue outlook appears to be the primary reason for the stock's significant sell-off.
While Interface reported solid fourth-quarter results, with adjusted earnings per share exceeding estimates and revenue increasing year-over-year, investors seem concerned about the company's near-term growth prospects. The underwhelming revenue guidance for the first quarter suggests that Interface may face challenges in maintaining its momentum amid potential headwinds in the broader economy or its industry.
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