New York, NY, July 26, 2013 -- Analyst Stifel Nicolaus has raised its estimates for carpet tile maker Interface.
Stifel now sees earnings per share this year of $0.72, up from $0.70, but it maintains its "hold" rating.
"We are moving our estimates up slightly given the strong commentary regarding July trends," John Baugh said.
"We are now modeling sales growth of 7% in the back half of the year with the Asia/Pacific leading the way."
Double digit sales growth in the U.S. was led by hospitality, government, and healthcare segments during the quarter, and Interface said it is taking share in the commercial market.
Interface believes there is still plenty of room to sell carpet tile to companies that have never used it before.
Interface estimates there's only a 50+% penetration in corporate office, 25% in education, and only 5-10% in hospitality.
The Flor residential business contributed $5 million or approximately 3-4% of the boost to the America’s performance.