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

Thematic (Sector/Industry)

United states Consumer discretionary / Thematic (Sector/Industry)

<ul><li>Home goods retailers and furniture manufacturers fell in a week of tough earnings news.</li><li>Ethan Allen Interiors (ETD) reported adjusted EPS of $0.63 for 1QFY24, down from $1.11 last year and below consensus of $0.72. </li><li>Positives in the quarter included a 70-basis point improvement in gross margin of 61.1% despite 23% lower sales. </li></ul>

Home goods retailers and furniture manufacturers fell in a week of tough earnings news.Ethan Allen Interiors (ETD) reported adjusted EPS of $0.63 for 1QFY24, down from $1.11 last year and below consensus of $0.72. Positives in the quarter included a 70-basis point improvement in gross margin of 61.1% despite 23% lower sales. 

Furniture/Furnishings Weekly -  Earnings Misses Lead Home Furnishings Lower