Analyst Revises 2011 Estimate for Interface

New York, NY, July 29, 2011 -- Flooring industry analyst Stifel Nicolaus is maintaining its earnings and revenue estimates for Interface Inc. for 2012 but has adjusted its earnings number down slightly for the remainder of this year.

It said Interface's earnings per share of $0.20 in the second quarter was a penny shy of Stifel's estimate.

"Input cost pressures and higher expense levels offset strong revenue in the quarter," the firm said, while noting that total revenues of $268 million were well ahead of its $255 million estimate.

Stifel lowered its 2011 earnings per share estimate from $0.91 to $0.86 but raised its revenue estimate to reflect 12.5% growth.

However, it maintained its 2012 per share estimate of $1.09 and revenue estimate of $1.17 billion.

"The corporate office market recovery in Europe and the Americas continues to drive results with orders increasing 20% plus in the Americas," Stifel said.

It said that modular tile now accounts for 40% of revenues at Bentley Prince Street and continues to grow as a percentage of the overall business.