Piper Sandler lowers Arbor Realty Trust stock price target on credit issues
ATLANTA - On Friday, Interface, Inc. (NASDAQ:TILE) reported third quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.61 surpassing the consensus estimate of $0.48 by 27%.
The commercial flooring company saw its shares rise 0.86% in pre-market trading following the announcement.
Revenue for the quarter reached $364.5 million, beating analyst projections of $358.19 million and representing a 5.9% increase compared to the same period last year. On a currency-neutral basis, sales grew 4.2% year-over-year. The company’s gross profit margin expanded significantly, improving 208 basis points to 39.5% on an adjusted basis.
Interface’s growth was broad-based, with CEO Laurel Hurd noting that "global billings grew across all regions, all product categories, and the majority of our market segments, highlighted by a 29% increase in Healthcare and a 5% increase in Corporate Office." The company’s One Interface strategy, which focuses on strengthening global functions while empowering local selling teams, continues to drive performance improvements.
"We continue to strengthen the quality of our earnings through effective execution," said CFO Bruce Hausmann. "Net sales grew on both price and volume, and gross profit margin expanded 233 basis points reflecting favorable mix and manufacturing efficiencies."
Based on the strong quarterly performance, Interface raised its full-year 2025 revenue guidance to $1.375-1.390 billion from its previous outlook of $1.370-1.390 billion. The company also increased its adjusted gross profit margin forecast to 38.5% of net sales, up from 37.7% previously.
The Americas segment delivered 4.0% sales growth, while the EAAA (Europe, Africa, Asia, Australia) segment saw sales increase by 8.8%, or 4.3% on a currency-neutral basis. Operating income rose 26.5% to $53.4 million compared to the third quarter of 2024.
Interface continues to strengthen its balance sheet, reducing its net debt by 40.8% since the end of fiscal 2024 to $120.4 million, with a net leverage ratio of just 0.6x adjusted EBITDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.