Benzinga | Mar 1, 2021 10:12AM EST

Interface's Earnings: A Preview

On Tuesday, March 02, Interface (NASDAQ:TILE) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Interface EPS is expected to be around $0.25, according to sell-side analysts. Sales will likely be near $278.80 million. Interface EPS in the same period a year ago totaled $0.46. Revenue was $339.48 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 45.65%. Sales would be down 17.87% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.20 0.06 0.21 0.41EPS Actual 0.28 0.27 0.32 0.46Revenue Estimate 272.63 M 251.70 M 298.12 M 344.63 MRevenue Actual 278.64 M 259.50 M 288.17 M 339.48 M

Stock Performance

Shares of Interface were trading at $12.42 as of February 26. Over the last 52-week period, shares are down 10.59%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Interface is scheduled to hold the call at 08:00:00 ET and can be accessed here.