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

Equity Bottom-Up

<div><ul><li>GOLF reported 3Q GAAP EPS of $0.81 versus $0.89, down Y/Y due to a much higher tax rate. GAAP operating income increased 13.2%. </li><li>We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.</li><li>If we apply the GAAP tax rate to adjusted pretax income, EPS was $0.87 versus $0.92, above our $0.85 estimate.</li></ul></div>

GOLF reported 3Q GAAP EPS of $0.81 versus $0.89, down Y/Y due to a much higher tax rate. GAAP operating income increased 13.2%. We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.If we apply the GAAP tax rate to adjusted pretax income, EPS was $0.87 versus $0.92, above our $0.85 estimate.

GOLF: 3Q Sales and EBITDA Beat Expectations; Raising Estimates

Acushnet Holdings

GOLF: 3Q Sales and EBITDA Beat Expectations; Raising Estimates