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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.

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<ul><li>Amidst weak demand and ongoing macro headwinds, Culp posted a solid quarter as it executes on its restructuring plan.</li><li>Culp posted 1QFY25 adjusted EPS of ($0.41), roughly in line with our estimate of ($0.38), versus ($0.27) in 1QFY24, on better-than-expected sales growth and operating margins in upholstery, offset by manufacturing inefficiencies in mattress resulting from the company’s global restructuring initiatives.</li><li>Culp had not previously provided formal earnings guidance for the quarter, so we take this performance as roughly in line with expectations given the challenging macro environment in residential furniture and management’s discussion of the restructuring in May.</li></ul>

Amidst weak demand and ongoing macro headwinds, Culp posted a solid quarter as it executes on its restructuring plan.Culp posted 1QFY25 adjusted EPS of ($0.41), roughly in line with our estimate of ($0.38), versus ($0.27) in 1QFY24, on better-than-expected sales growth and operating margins in upholstery, offset by manufacturing inefficiencies in mattress resulting from the company’s global restructuring initiatives.Culp had not previously provided formal earnings guidance for the quarter, so we take this performance as roughly in line with expectations given the challenging macro environment in residential furniture and management’s discussion of the restructuring in May.

Culp, Inc. - 1QFY25 Adj. EPS ($0.41) Vs. Prior Year ($0.27) As Mattress Restructuring Gains Traction

Culp Inc

Culp, Inc. - 1QFY25 Adj. EPS ($0.41) Vs. Prior Year ($0.27) As Mattress Restructuring Gains Traction