Preview of what to expect in Interface (TILE) Q1 earnings report

Interface, a manufacturer of modular flooring, is set to announce its first-quarter earnings soon, and investors are eager to gain insights into the company’s performance. In the last quarter, Interface fell short of analysts’ revenue projections by 1%, reporting revenues of $335 million, indicating a 3% increase compared to the previous year. Although the company exceeded analysts’ earnings per share estimates, its revenue guidance for the upcoming quarter slightly missed analysts’ expectations. This mixed performance has left investors wondering whether Interface is a favorable investment option as it approaches its earnings report.

Analysts forecast a 2.3% year-on-year increase in Interface’s revenue to $296.5 million for the first quarter, a reversal from the 2% decline reported in the same period last year. Adjusted earnings are estimated to be $0.21 per share. Over the last 30 days, analysts covering Interface have mostly maintained their projections, indicating a belief in the company’s stability leading up to the earnings announcement. It is noteworthy that Interface has undershot Wall Street’s revenue estimates on four occasions within the past two years.

Assessing the performance of Interface’s peers in the business services and supplies sector, some companies have already disclosed their first-quarter results, providing valuable insights into what could be expected from Interface. For instance, Steelcase achieved a 1.7% year-on-year revenue growth, meeting analysts’ expectations, while MillerKnoll reported a flat revenue, falling short of estimates by 4.6%. Following their financial reports, Steelcase’s stock rose by 6.5%, and MillerKnoll’s shares increased by 10.6%.

The aftermath of Trump’s victory in November sparked excitement in the financial markets; however, concerns over potential tariffs have led to a change in sentiment in 2025. Despite some companies in the business services and supplies industry exhibiting resilience in this uncertain environment, the sector, on average, has been underperforming, with share prices declining by 3.6% over the past month. Interface witnessed a 7.7% decrease during the same period, with analysts assigning an average price target of $31.33 to the company, compared to its current share price of $18.80.

Companies with excess cash often opt to repurchase their shares, provided the valuation is favorable. An opportunity presents itself in the form of a low-priced stock that generates substantial free cash flow while concurrently engaging in share buybacks. This fallen angel growth story, which has begun rebounding from a setback, demonstrates the potential for a bright recovery.