Earnings Preview: Interface
Interface (NASDAQ:TILE) is set to give its latest quarterly earnings report on Friday, 2025-05-02. Here's what investors need to know before the announcement.
Analysts estimate that Interface will report an earnings per share (EPS) of $0.21.
Anticipation surrounds Interface's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
The company's EPS beat by $0.05 in the last quarter, leading to a 5.03% increase in the share price on the following day.
Here's a look at Interface's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.29 | 0.34 | 0.28 | 0.12 |
| EPS Actual | 0.34 | 0.48 | 0.40 | 0.24 |
| Price Change % | 5.0% | 33.0% | 5.0% | 10.0% |
Performance of Interface Shares
Shares of Interface were trading at $18.8 as of April 30. Over the last 52-week period, shares are up 8.51%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on Interface
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Interface.
Interface has received a total of 2 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $30.0, the consensus suggests a potential 59.57% upside.
Peer Ratings Overview
The analysis below examines the analyst ratings and average 1-year price targets of ACCO Brands and MSA Safety, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for ACCO Brands, with an average 1-year price target of $7.0, suggesting a potential 62.77% downside.
- Analysts currently favor an Neutral trajectory for MSA Safety, with an average 1-year price target of $177.0, suggesting a potential 841.49% upside.
Overview of Peer Analysis
In the peer analysis summary, key metrics for ACCO Brands and MSA Safety are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Interface | Outperform | 3.04% | $122.31M | 4.38% |
| ACCO Brands | Outperform | -8.29% | $155.50M | 3.37% |
| MSA Safety | Neutral | 0.88% | $234.43M | 7.88% |
Key Takeaway:
Interface is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit. In terms of return on equity, Interface is at the top compared to its peers.
About Interface
Interface Inc is engaged in the design, production, and sale of carpet tiles. It also provides Luxury Vinyl tiles and rubber flooring. The company mainly targets corporate and noncorporate office markets, including government, education, healthcare, hospitality, and retailers. Its geographical segments include the Americas, Europe, and Asia-Pacific. It has two operating and reportable segments- namely Americas (AMS) and Europe, Africa, Asia and Australia (collectively EAAA). Key revenue is generated from AMS segment.
Interface's Economic Impact: An Analysis
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Interface showcased positive performance, achieving a revenue growth rate of 3.04% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Interface's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.47%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Interface's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.38%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Interface's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.8%, the company showcases efficient use of assets and strong financial health.
Debt Management: Interface's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.78, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for Interface visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.