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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

Bassett Furniture Inds / Equity Bottom-Up

<ul><li>4QFY24 adjusted EPS of $0.24 beat our estimate of ($0.08) on much stronger-than-expected margins despite the continued weakness in industry-wide demand.</li><li>Revenue was down 13.7% in wholesale and 8.3% in retail, as tough industry conditions persist, driven by the persistent slump in housing (a traditional driver of demand in residential furniture) and subdued spending on home improvement in the face of the post-lockdown exuberance.</li><li>Nonetheless, a few bright spots were apparent, as retail orders were down only 0.6%, orders for outdoor furniture were up 33% (on a relatively small base), and e-commerce was up 27% (similarly, on a small base). </li></ul>

4QFY24 adjusted EPS of $0.24 beat our estimate of ($0.08) on much stronger-than-expected margins despite the continued weakness in industry-wide demand.Revenue was down 13.7% in wholesale and 8.3% in retail, as tough industry conditions persist, driven by the persistent slump in housing (a traditional driver of demand in residential furniture) and subdued spending on home improvement in the face of the post-lockdown exuberance.Nonetheless, a few bright spots were apparent, as retail orders were down only 0.6%, orders for outdoor furniture were up 33% (on a relatively small base), and e-commerce was up 27% (similarly, on a small base). 

Bassett Furniture Industries, Inc. - 4QFY24 Adj. EPS of $0.24 Beats Our Estimate