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>Before market open on February 23, HNI reported 4Q22 results that were better than we expected on both the top line (a modest beat) and margins (a significant beat).</li><li>Results were also ahead of consensus. HNI reported 4Q22 sales of $569 million versus $603 million in 4Q21, ahead of our estimate by $7.5 million and consensus by $9 million.</li><li>Adjusted EPS was $0.63, or $0.17 ahead of our estimate of $0.46 (also consensus).</li></ul>

Before market open on February 23, HNI reported 4Q22 results that were better than we expected on both the top line (a modest beat) and margins (a significant beat).Results were also ahead of consensus. HNI reported 4Q22 sales of $569 million versus $603 million in 4Q21, ahead of our estimate by $7.5 million and consensus by $9 million.Adjusted EPS was $0.63, or $0.17 ahead of our estimate of $0.46 (also consensus).

Margin Improvement Evident in 4Q22; Sales Headwinds Remain into 2023

HNI Corp

Margin Improvement Evident in 4Q22; Sales Headwinds Remain into 2023