Interface, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Interface, Inc. (NASDAQ:TILE) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of US$396m were what the analysts expected, Interface surprised by delivering a (statutory) profit of US$0.88 per share, an impressive 33% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Interface's four analysts are now forecasting revenues of US$1.47b in 2026. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.3% to US$2.41 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.47b and earnings per share (EPS) of US$2.20 in 2026. So the consensus seems to have become somewhat more optimistic on Interface's earnings potential following these results.

View our latest analysis for Interface

The consensus price target rose 12% to US$45.25, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Interface, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$41.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Interface is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Interface's growth to accelerate, with the forecast 4.6% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. So it's clear that despite the acceleration in growth, Interface is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Interface following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Interface's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Interface analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Interface .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.