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>HNI beat on EPS, posting 3QFY24 adjusted EPS of $1.03, $0.04 above our estimate and $0.10 better than 3QFY23, despite total revenue coming in $41.3 million lower than our estimate and -5.5% Y/Y, showcasing (once again) the company’s strong margins and operating discipline.</li><li>This is a company firing on all cylinders when it comes to margins.</li><li>Given the continued challenging macro/industry conditions confronting both segments (Workplace Furnishings [WF] and Residential Building Products [RBP]), the revenue shortfalls are not particularly unexpected.</li></ul>

HNI beat on EPS, posting 3QFY24 adjusted EPS of $1.03, $0.04 above our estimate and $0.10 better than 3QFY23, despite total revenue coming in $41.3 million lower than our estimate and -5.5% Y/Y, showcasing (once again) the company’s strong margins and operating discipline.This is a company firing on all cylinders when it comes to margins.Given the continued challenging macro/industry conditions confronting both segments (Workplace Furnishings [WF] and Residential Building Products [RBP]), the revenue shortfalls are not particularly unexpected.

HNI Corporation - 3QFY24 Adjusted EPS $1.03 Beats WTR Estimate...