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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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<ul><li>We are revising our FY25 and outyear revenue and EPS estimates following CULP’s 1Q25 earnings release and new guidance.</li><li>As previously reviewed (1), CULP posted adjusted EPS of ($0.41) in 1QFY25 versus ($0.27) in the prior year, which was approximately in line with our expectations given the firm’s restructuring initiatives (focused primarily in mattress) and continuing challenging industry conditions.</li><li>Management has provided some guidance, suggesting 2QFY25 sales will be flat, with adjusted EBITDA approaching break-even. </li></ul>

We are revising our FY25 and outyear revenue and EPS estimates following CULP’s 1Q25 earnings release and new guidance.As previously reviewed (1), CULP posted adjusted EPS of ($0.41) in 1QFY25 versus ($0.27) in the prior year, which was approximately in line with our expectations given the firm’s restructuring initiatives (focused primarily in mattress) and continuing challenging industry conditions.Management has provided some guidance, suggesting 2QFY25 sales will be flat, with adjusted EBITDA approaching break-even. 

Culp, Inc. - New FY25 and Outyear Revenue and EPS Estimates

Culp Inc

Culp, Inc. - New FY25 and Outyear Revenue and EPS Estimates