Core Insights - Meros Investment Management sold 259,973 shares of Interface, reducing its position by approximately $4.1 million in the third quarter, leaving a remaining stake of 166,576 shares valued at $4.8 million as of September 30 [2][3][7] - The sale decreased Interface's representation in Meros's reportable assets under management (AUM) to 2.1%, down from 4.24% in the previous quarter [4] - Interface's stock price was $27.32, reflecting a 5% increase over the past year, but underperforming compared to the S&P 500, which rose 13% in the same period [4] Company Overview - Interface, Inc. has a market capitalization of $1.6 billion, with a trailing twelve months (TTM) revenue of $1.4 billion and a net income of $113 million [5] - The company specializes in modular flooring products, including carpet tiles, resilient flooring, and luxury vinyl tiles, serving both commercial and residential markets [6][9] Recent Performance - In the third quarter, Interface reported net sales of $364.5 million, a 5.9% increase year-over-year, and a GAAP EPS of $0.78, which is a 62.5% increase from the previous year [10] - Management raised full-year sales guidance to nearly $1.38 to $1.39 billion, indicating confidence in future performance [10] - The company generated $76.7 million in cash during the third quarter, highlighting strong cash flow and operational momentum [11] Sales Channels - Interface generates revenue through direct sales to end-users, indirect sales via contractors and distributors, and online channels, complemented by project management and maintenance services [12]

Core Insights - Meros Investment Management sold 259,973 shares of Interface, reducing its stake by approximately $4.1 million, leaving a remaining position of 166,576 shares valued at $4.8 million at quarter-end [2][3] Company Performance - Interface reported a 5.9% increase in net sales to $364.5 million for the third quarter, with GAAP EPS rising 62.5% year-over-year to $0.78 and adjusted EPS increasing by 27% to $0.61 [9] - The company raised its full-year sales guidance to nearly $1.38 to $1.39 billion, indicating improved operational performance and higher adjusted gross margins [9] Market Position - As of the latest filing, Interface's shares were priced at $27.32, reflecting a 5% increase over the past year, although this performance lags behind the S&P 500, which rose by 13% in the same period [3] - Interface's market capitalization stands at $1.6 billion, with a trailing twelve-month (TTM) revenue of $1.4 billion and a TTM net income of $113 million [4] Business Overview - Interface is a modular flooring company with a diverse product portfolio, including modular carpet tiles, resilient flooring, and luxury vinyl tile, serving both commercial and residential markets globally [6][8] - The company generates revenue through direct sales to end-users, indirect sales via contractors and distributors, and online channels, complemented by project management and maintenance services [8]

Company Overview - Mohawk Industries, Inc. (MHK) is headquartered in Calhoun, Georgia, and specializes in designing, manufacturing, sourcing, distributing, and marketing flooring products for both residential and commercial applications, as well as new construction markets. The company has a market cap of $6.8 billion and offers a diverse range of products including ceramic and porcelain tiles, natural stone, carpets, rugs, laminate, luxury vinyl tile, sheet vinyl, wood flooring, and countertops [1]. Stock Performance - MHK shares have underperformed the broader market over the past year, declining by 20.1%, while the S&P 500 Index has increased by nearly 11%. Year-to-date in 2025, MHK stock is down 7.7%, compared to a 12.3% rise in the S&P 500 [2]. - Compared to the iShares U.S. Home Construction ETF (ITB), which has declined about 16.9% over the past year, MHK's performance remains weaker, with the ETF showing a 4.8% loss year-to-date [3]. Financial Performance - In Q3, MHK reported an adjusted EPS of $2.67, which fell short of Wall Street expectations of $2.68. The company's revenue was $2.8 billion, exceeding the forecast of $2.7 billion. For Q4, MHK anticipates adjusted EPS to be between $1.90 and $2.00 [5]. - For the current fiscal year ending in December, analysts expect MHK's EPS to decline by 7.8% to $8.94 on a diluted basis. The company's earnings surprise history is mixed, having beaten consensus estimates in three of the last four quarters [6]. Analyst Ratings - Among the 18 analysts covering MHK stock, the consensus rating is a "Moderate Buy," consisting of nine "Strong Buy" ratings and nine "Holds." This is an improvement from two months ago when only eight analysts suggested a "Strong Buy" [6][7]. - Stephen Kim from Evercore ISI maintained a "Hold" rating on MHK with a price target of $118, indicating a potential upside of 7.3% from current levels [7].