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>2QFY26 constant currency sales and EBITDA beat the high end of management’s previous guidance, marking the fourth consecutive quarter of Y/Y volume growth and signaling that the business’ underlying momentum continues to build. </li><li>Reported results were tempered by a more adverse currency impact than expected, while an unusually high tax rate created an additional headwind to adjusted EPS.</li><li>Due primarily to non-operating tax and currency headwinds, adjusted EPS declined 13.6% to $0.51 from $0.59 and was below FactSet consensus of $0.54. </li></ul></div>

2QFY26 constant currency sales and EBITDA beat the high end of management’s previous guidance, marking the fourth consecutive quarter of Y/Y volume growth and signaling that the business’ underlying momentum continues to build. Reported results were tempered by a more adverse currency impact than expected, while an unusually high tax rate created an additional headwind to adjusted EPS.Due primarily to non-operating tax and currency headwinds, adjusted EPS declined 13.6% to $0.51 from $0.59 and was below FactSet consensus of $0.54. 

Herbalife Ltd

HLF: Underlying Momentum Builds