Interface, Inc. TILE is scheduled to report first-quarter fiscal 2024 results on May 3, before market open.
In the last reported quarter, the company’s earnings and net sales topped the Zacks Consensus Estimate by 105% and 2%, respectively.
The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 29.9%.
What Do the Estimates Say?
The Zacks Consensus Estimate for first-quarter 2024 earnings per share has increased to 12 cents from 10 cents over the past 30 days. The estimated figure indicates an increase of 71.4% from the earnings of 7 cents per share reported in the year-ago quarter.
Interface, Inc. Price and EPS Surprise
Interface, Inc. price-eps-surprise | Interface, Inc. Quote
For net sales, the consensus mark is pegged at nearly $284.5 million. The metric suggests a decline of 3.8% from the year-ago quarter’s figure.
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
The first-quarter fiscal 2024 net sales of Interface are likely to have declined year over year due to soft contributions from its reportable segments including Americas or AMS (58% of total net sales in 2023), and Europe, Africa, Asia and Australia or EAAA (42% of total net sales in 2023). The downtrend is primarily attributable to softness in the retail sector, driven mostly by project deferrals and uncertain macroeconomic conditions.
The company expects its first-quarter net sales between $280 million and $290 million, down from $295.8 million reported in the year-ago quarter.
Nonetheless, demand strength in education and corporate offices is likely to have partially offset the aforementioned headwinds to some extent in the quarter. Also, the company’s marketing and sales initiatives along with investments in product development are likely to have been additional benefits.
Meanwhile, Interface’s bottom line for the quarter is expected to have benefited year over year thanks to strong execution from its selling organization to hold price, favorable product mix and raw material input cost deflation. Also, efficient capital allocation strategies are likely to have bode well during the quarter.
The company expects to achieve an adjusted gross margin of 36% in the first quarter, which is up from 33.3% reported in the year-ago quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Interface this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Interface has an Earnings ESP of +16.67%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: TILE has a Zacks Rank of 3.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM Resorts International MGM has an Earnings ESP of +24.65% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGM is expected to register a 36.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 271.5%.
DraftKings Inc. DKNG currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being negative 57.1%.
AMC Entertainment Holdings, Inc. AMC currently has an Earnings ESP of +6.96% and a Zacks Rank of 3.
AMC’s earnings for the to-be-reported quarter are expected to increase 39.2%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 50.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
