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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

Equity Research Firm

Equity Bottom-Up

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.</p></li><li><p>Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.</p></li><li><p>Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.</p></li></ul></div></div></div></div>

Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.

Steelcase, Inc. - 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured

Steelcase Inc Cl A

Steelcase, Inc. - 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured