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

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Equity Bottom-Up

<ul><li>Culp reported 1QFY26 GAAP EPS of ($0.02) versus ($0.58) in 1QFY25.</li><li>Adjusting for one-time items, including a $4.0MM gain on the sale of property in Canada in 1QFY26, we estimate that ongoing EPS was ($0.30) versus ($0.36) in 1QFY25; management does not provide an adjusted EPS number.</li><li>Please note with this report, we are assuming coverage of Culp, Inc.</li></ul>

Culp reported 1QFY26 GAAP EPS of ($0.02) versus ($0.58) in 1QFY25.Adjusting for one-time items, including a $4.0MM gain on the sale of property in Canada in 1QFY26, we estimate that ongoing EPS was ($0.30) versus ($0.36) in 1QFY25; management does not provide an adjusted EPS number.Please note with this report, we are assuming coverage of Culp, Inc.

Culp, Inc.: Demand Continues to Be Soft; Cost-Saving Initiatives Benefiting Margins

Culp Inc

Culp, Inc.: Demand Continues to Be Soft; Cost-Saving Initiatives Benefiting Margins