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

<ul><li>1QFY25 Adj EPS of $0.44 beat our estimate of $0.35 on better-than-expected revenues in both segments and continued margin strength.</li><li>HNI saw growth on the contract side of Workplace Furnishings, with revenue up 4% Y/Y, and in the renovation/retrofit side of Residential Building Products, with sales up 13% Y/Y.</li><li>These gains offset relative weakness in the traditionally more volatile SMB component of Workplace Furnishings, down 5% Y/Y, and in the new construction component of Residential Building Products, which was only up 3% Y/Y. </li></ul>

1QFY25 Adj EPS of $0.44 beat our estimate of $0.35 on better-than-expected revenues in both segments and continued margin strength.HNI saw growth on the contract side of Workplace Furnishings, with revenue up 4% Y/Y, and in the renovation/retrofit side of Residential Building Products, with sales up 13% Y/Y.These gains offset relative weakness in the traditionally more volatile SMB component of Workplace Furnishings, down 5% Y/Y, and in the new construction component of Residential Building Products, which was only up 3% Y/Y. 

HNI Corporation - Strong 1Q25; Productivity Gains; Strength in Contract