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

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Equity Bottom-Up

<ul><li>Persistent macro headwinds during 2QFY25 affected revenue and earnings as management continues to execute against its restructuring plan to restore profitability at lower revenue thresholds.</li><li>Adjusted EPS of ($0.28) was $0.10 lower than our estimate and $0.09 lower than the prior year, mainly on lower-than-expected revenue in upholstery as tough industry conditions persist.</li><li>The weak revenue picture in upholstery was unexpected, but not surprising; it remains tough out there.</li></ul>

Persistent macro headwinds during 2QFY25 affected revenue and earnings as management continues to execute against its restructuring plan to restore profitability at lower revenue thresholds.Adjusted EPS of ($0.28) was $0.10 lower than our estimate and $0.09 lower than the prior year, mainly on lower-than-expected revenue in upholstery as tough industry conditions persist.The weak revenue picture in upholstery was unexpected, but not surprising; it remains tough out there.

Culp, Inc. - 2QFY25 Adjusted EPS Of ($0.28) As Macro Headwinds Persist

Culp Inc

Culp, Inc. - 2QFY25 Adjusted EPS Of ($0.28) As Macro Headwinds Persist