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It's been a good week for Interface, Inc. (NASDAQ:TILE) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.8% to US$19.23. 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. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Interface after the latest results.
Taking into account the latest results, the consensus forecast from Interface's three analysts is for revenues of US$1.35b in 2025. This reflects a satisfactory 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.3% to US$1.57. Before this earnings report, the analysts had been forecasting revenues of US$1.34b and earnings per share (EPS) of US$1.55 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.
View our latest analysis for Interface
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.6% to US$31.33. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Interface's rate of growth is expected to accelerate meaningfully, with the forecast 3.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.7% annually. So it's clear that despite the acceleration in growth, Interface is expected to grow meaningfully slower than the industry average.