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>MLKN’s first-quarter earnings showcased strong margins but slightly lower-than-anticipated revenues as delivery times for big projects extended and more deals were booked later in the quarter (see WTR summary note).</li><li>MillerKnoll’s 1QFY25 revenue was down 5.3% Y/Y on an organic basis and adjusted EPS of $0.36 was $0.03 below WTR’s estimate and $0.04 below consensus.</li><li>Gross margins were flat at 39%, with a 175-bp decline in Americas on lower revenues offset by improvements in both International and Global Retail.</li></ul>

MLKN’s first-quarter earnings showcased strong margins but slightly lower-than-anticipated revenues as delivery times for big projects extended and more deals were booked later in the quarter (see WTR summary note).MillerKnoll’s 1QFY25 revenue was down 5.3% Y/Y on an organic basis and adjusted EPS of $0.36 was $0.03 below WTR’s estimate and $0.04 below consensus.Gross margins were flat at 39%, with a 175-bp decline in Americas on lower revenues offset by improvements in both International and Global Retail.

MillerKnoll, Inc. Revising Revenue and EPS Estimates