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Water Tower Research

Research from 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.

Equity Research Firm

Equity Bottom-Up

<ul style="list-style-type: disc;"><li>After market close on September 26, MillerKnoll reported 1QFY24, beating estimates on significantly above-forecasted gross margin and modestly better-than-estimated sales.</li><li>Our tabular analysis compares its 1QFY24 results with 1QFY23 and our 1QFY24 estimates.</li><li>The beat notwithstanding, MillerKnoll’s results were below 1QFY23, which benefited from ~$77 million in sales due to a 14th week.</li></ul>

After market close on September 26, MillerKnoll reported 1QFY24, beating estimates on significantly above-forecasted gross margin and modestly better-than-estimated sales.Our tabular analysis compares its 1QFY24 results with 1QFY23 and our 1QFY24 estimates.The beat notwithstanding, MillerKnoll’s results were below 1QFY23, which benefited from ~$77 million in sales due to a 14th week.

MillerKnoll, Inc. - 1QFY24 Beats Estimates on Gross Margin; Hikes Guidance

Thematic (Sector/Industry)

<ul style="list-style-type: disc;"><li>In a week when the broad market indexes retreated by ~3%, the positive earnings report from Steelcase, Inc. (SCS) provided a boost for all the Commercial/Contract Furniture issues.</li><li>SCS results supported a view that demand in the office furniture sector had troughed.</li><li>CFO Dave Sylvester noted that the weekly pace of orders in its Americas segment was steady through its fiscal 2Q and into 3Q and that the Y/Y order comparison for the first few weeks of September was up by ~18%. For details, see our update note from September 22.</li></ul>

In a week when the broad market indexes retreated by ~3%, the positive earnings report from Steelcase, Inc. (SCS) provided a boost for all the Commercial/Contract Furniture issues.SCS results supported a view that demand in the office furniture sector had troughed.CFO Dave Sylvester noted that the weekly pace of orders in its Americas segment was steady through its fiscal 2Q and into 3Q and that the Y/Y order comparison for the first few weeks of September was up by ~18%. For details, see our update note from September 22.

Furniture/Furnishings Weekly - SCS Results Boost Commercial/Contract Furniture Sector

<ul style="list-style-type: disc;"><li>MillerKnoll reports 1QFY24 after market close on Tuesday, September 26. It will host its earnings conference call that afternoon, starting at 5:00 pm ET.</li><li>Our estimates are non-GAAP (adjusted) EPS of $0.20 on revenue of $889 million. Consensus is EPS of $0.21 on revenue of $896 million.</li><li>Management guidance is for revenue of $880-920 million and adjusted EPS of $0.18- 0.24.</li></ul>

MillerKnoll reports 1QFY24 after market close on Tuesday, September 26. It will host its earnings conference call that afternoon, starting at 5:00 pm ET.Our estimates are non-GAAP (adjusted) EPS of $0.20 on revenue of $889 million. Consensus is EPS of $0.21 on revenue of $896 million.Management guidance is for revenue of $880-920 million and adjusted EPS of $0.18- 0.24.

MillerKnoll, Inc. - Preview: Watching Order Trends, Margins in 1QFY24 Report

<div><div><div><ul style="list-style-type: disc;"><li>Herein we inaugurate the WTR Furniture/Furnishings Weekly. Under “Statistics”, we recap stock price performance for select issues in three sectors: Commercial/Contract Furniture, Residential Manufacturers &amp; Suppliers, and Home Goods Retailers.</li><li>Inside, we present data on company operating performance and valuation. Pertinent economic data/charts to furniture/furnishings issues follow.</li><li>This front-page column, and additional text, if needed, will be devoted to news tidbits.</li></ul></div></div></div>

Herein we inaugurate the WTR Furniture/Furnishings Weekly. Under “Statistics”, we recap stock price performance for select issues in three sectors: Commercial/Contract Furniture, Residential Manufacturers &amp; Suppliers, and Home Goods Retailers.Inside, we present data on company operating performance and valuation. Pertinent economic data/charts to furniture/furnishings issues follow.This front-page column, and additional text, if needed, will be devoted to news tidbits.

Inaugural Industry Report Tracks Stocks, Fundamentals, and Economic Drivers

<ul style="list-style-type: disc;"><li>Herein we revise and update MLKN estimates following MillerKnoll's FY23 earnings report and FY24 guidance.</li><li>Our 1QFY24 diluted non-GAAP EPS estimate is now $0.20, down $0.10 from our previous (reduced) $0.30 estimate.</li><li>Our FY24 annual estimate is now $1.82 (down from $2.00), below the midpoint of the $1.70-$2.00 management outlook.</li></ul>

Herein we revise and update MLKN estimates following MillerKnoll's FY23 earnings report and FY24 guidance.Our 1QFY24 diluted non-GAAP EPS estimate is now $0.20, down $0.10 from our previous (reduced) $0.30 estimate.Our FY24 annual estimate is now $1.82 (down from $2.00), below the midpoint of the $1.70-$2.00 management outlook.

MillerKnoll, Inc. - Refreshing Estimates and Presenting New Model

United States

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior office furnishings, furniture systems, products, and services. The Company markets its products to companies, organizations, and individuals worldwide.

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MillerKnoll (MLKN US)

MillerKnoll, Inc. - 1QFY24 Beats Estimates on Gross Margin; Hikes Guidance

After market close on September 26, MillerKnoll reported 1QFY24, beating estimates on significantly above-forecasted gross margin and modestly...

Water Tower Research

Furniture/Furnishings Weekly - SCS Results Boost Commercial/Contract Furniture Sector

In a week when the broad market indexes retreated by ~3%, the positive earnings report from Steelcase, Inc. (SCS) provided a boost for all the...

Water Tower Research

MillerKnoll, Inc. - Preview: Watching Order Trends, Margins in 1QFY24 Report

MillerKnoll reports 1QFY24 after market close on Tuesday, September 26. It will host its earnings conference call that afternoon, starting at 5:00...

Water Tower Research

Inaugural Industry Report Tracks Stocks, Fundamentals, and Economic Drivers

Under “Statistics”, we recap stock price performance for select issues in three sectors: Commercial/Contract Furniture, Residential Manufacturers &...

Water Tower Research

MillerKnoll, Inc. - Refreshing Estimates and Presenting New Model

Herein we revise and update MLKN estimates following MillerKnoll's FY23 earnings report and FY24 guidance.Our 1QFY24 diluted non-GAAP EPS estimate...

Water Tower Research

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