Interface, Inc. (NASDAQ:TILE) Released Earnings Last Week And Analysts Lifted Their Price Target To US$31.33

Investors in Interface, Inc. (NASDAQ:TILE) had a good week, as its shares rose 8.4% to close at US$20.43 following the release of its first-quarter results. Interface reported in line with analyst predictions, delivering revenues of US$297m and statutory earnings per share of US$0.22, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Interface's three analysts is for revenues of US$1.36b in 2025. This reflects a satisfactory 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.1% to US$1.60. In the lead-up to this report, the analysts had been modelling revenues of US$1.34b and earnings per share (EPS) of US$1.57 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Interface

The consensus price target rose 5.6% to US$31.33despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Interface's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Interface analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$30.00. This is a very narrow spread of estimates, implying either that Interface is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Interface's rate of growth is expected to accelerate meaningfully, with the forecast 3.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.4% p.a. 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 6.7% 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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. At Simply Wall St, we have a full range of analyst estimates for Interface going out to 2027, 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.