Research from Water Tower Research, Water Tower Research

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.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>Cambium Networks (CMBM) reported earnings that came in below our (and consensus) expectations (a $0.25 loss versus a $0.21 loss) mainly due to unexpected E&amp;O (inventory) charges, which hit gross margin for 10.9 points.</li><li>Gross margin would have been 44.4%, but instead came in at 33.5%. Revenue came in slightly better than expected at $45.9 million.</li><li>The company continued to see a recovery in the enterprise market in 2Q24, with business up in all geographies, and growth in its Point-to-Multipoint (PMP) business. </li></ul>

Cambium Networks (CMBM) reported earnings that came in below our (and consensus) expectations (a $0.25 loss versus a $0.21 loss) mainly due to unexpected E&amp;O (inventory) charges, which hit gross margin for 10.9 points.Gross margin would have been 44.4%, but instead came in at 33.5%. Revenue came in slightly better than expected at $45.9 million.The company continued to see a recovery in the enterprise market in 2Q24, with business up in all geographies, and growth in its Point-to-Multipoint (PMP) business. 

Cambium Networks Corporation - CMBM: 2Q24 Revenue Beat but EPS Hit by Inventory Write-Down