Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

Lifevantage Corporation is a health and nutrition company that develops dietary supplements. The Company produces nutritional products that are intended to combat oxidative stress to support brain, eye, and joint function, as well as skin canine products.

<ul><li>LFVN reported 1QFY25 ongoing EPS of $0.15 versus $0.13 in 1QFY24, up 15.4% and in line with our forecast.</li><li>As has been the case recently, sales were below expectations, but that was made up for with better-than- expected margins.</li><li>1QFY25 sales were $47.2 million, a decline of 8.1% Y/Y, and below our forecast of $49.8 million, down 3.0% Y/Y. </li></ul>

LFVN reported 1QFY25 ongoing EPS of $0.15 versus $0.13 in 1QFY24, up 15.4% and in line with our forecast.As has been the case recently, sales were below expectations, but that was made up for with better-than- expected margins.1QFY25 sales were $47.2 million, a decline of 8.1% Y/Y, and below our forecast of $49.8 million, down 3.0% Y/Y. 

LifeVantage Corporation - 1QFY25 EPS in Line on Better Margins

Arq, Inc. operates as a environmental technology company. The Company offers activated carbon technologies to remove harmful chemicals and pollutants, such as PFAS, from water supplies, contaminated land sites, and air emissions which controls the mercury and other contaminants for power generation and industrial companies. Arq serves customers in the United States.

<ul><li>Arq to report 3Q24 results on November 7 before market open with a conference call at 8:30 am ET on the same day. </li><li>We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of $3.3 million.</li><li>We expect another strong quarter of operating results on the back of PAC pricing improvements and operating efficiency. </li></ul>

Arq to report 3Q24 results on November 7 before market open with a conference call at 8:30 am ET on the same day. We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of $3.3 million.We expect another strong quarter of operating results on the back of PAC pricing improvements and operating efficiency. 

Arq, Inc. - 3Q Preview - Look for Continued Momentum in PAC Performance

1 800 flowers.com inc cl a / Equity Bottom-Up

1-800-FLOWERS.COM, Inc. is an e-commerce provider of floral products and gifts. The Company's product offerings, including fresh-cut and seasonal flowers, plants, floral arrangements, and home and garden merchandise, can be purchased online or by calling its toll-free telephone number.

<ul><li>FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although better than consensus of ($0.53).</li><li>Sales declined 10.0% to $242.1 million, below our forecast for a 7.1% decline to $249.9 million and consensus of $246.9 million.</li><li>E-commerce revenue declined 8.0%, with orders down 6.5% and average order value down 1.5%. </li></ul>

FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although better than consensus of ($0.53).Sales declined 10.0% to $242.1 million, below our forecast for a 7.1% decline to $249.9 million and consensus of $246.9 million.E-commerce revenue declined 8.0%, with orders down 6.5% and average order value down 1.5%. 

1-800-Flowers.com, Inc. - 1QFY25 About as Expected; No Changes to FY Estimates

Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Simplex Holdings, Inc. provides system information technology solutions. The Company offers system consulting, system development, system operation and maintenance, and other services.  Simplex Holdings serves financial institutions across worldwide.

<ul><li>Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System Integration Project.</li><li>We believe positive factors such as continued strong demand for DX services, improving profitability at Operation Service, and high order visibility outweigh this temporary event.</li><li>However, we do seek clarity in terms of understanding the company’s strategic direction over its insurance solutions. </li></ul>

Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System Integration Project.We believe positive factors such as continued strong demand for DX services, improving profitability at Operation Service, and high order visibility outweigh this temporary event.However, we do seek clarity in terms of understanding the company’s strategic direction over its insurance solutions. 

Simplex Holdings (4373 JP) - Positive Underlying Growth Trend, Though Clarity Needed

Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Research Coverage on Small and Micro-Cap Companies

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

Titan International, Inc. manufactures mounted tire and wheel systems for off-highway equipment used in agriculture, construction, mining, military, recreation, and grounds care. The Company has worldwide manufacturing and distribution facilities.

<ul><li>Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.</li><li>The company serves the agricultural, earthmoving / construction, and consumer markets.</li><li>Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.9x.</li></ul>

Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.The company serves the agricultural, earthmoving / construction, and consumer markets.Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.9x.

TWI: Titan announces 3rd quarter 2024 results and provides update on industry conditions. There may be light at the end of the destocking tunnel.

Small Cap Longs
Mighty oaks from tiny acorns grow

LifeVantage Corporation - 1QFY25 EPS in Line on Better Margins

LFVN reported 1QFY25 ongoing EPS of $0.15 versus $0.13 in 1QFY24, up 15.4% and in line with our forecast. As has been the case recently, sales were...

Water Tower Research

Arq, Inc. - 3Q Preview - Look for Continued Momentum in PAC Performance

We forecast $30.2 million in revenue, gross margin of 37%, and EBITDA of $3.3 million versus consensus of $30.4 million in revenue and EBITDA of...

Water Tower Research

1-800-Flowers.com, Inc. - 1QFY25 About as Expected; No Changes to FY Estimates

FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although...

Water Tower Research

Simplex Holdings (4373 JP) - Positive Underlying Growth Trend, Though Clarity Needed

Insurance project cancellation already priced in–Q1-2FY3/25 results confirmed a ¥0.6bn sales write-off for the cancellation of the Insurance System...

Astris Advisory Japan

TWI: Titan announces 3rd quarter 2024 results and provides update on industry conditions. There may be light at the end of the destocking tunnel.

Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages. The company serves the agricultural, earthmoving /...

Zacks Small Cap Research