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>MLKN reported 1QFY26 adjusted EPS of $0.45 versus $0.36 in 1QFY25, up 25.2%, and well ahead of FactSet consensus of $0.34, which was also our forecast, and management’s expectations for $0.32-0.38.</li><li>The adverse net tariff impact on EPS was ~$0.08, slightly better than the $0.09- 0.11 expected, which was offset by a $0.01-0.02 adverse impact on EPS from a higher-than-expected tax rate.</li><li>Sales in the quarter increased 10.9% to $955.7MM, better than consensus of 5.7% and our estimate for 5.2% growth. </li></ul>

MLKN reported 1QFY26 adjusted EPS of $0.45 versus $0.36 in 1QFY25, up 25.2%, and well ahead of FactSet consensus of $0.34, which was also our forecast, and management’s expectations for $0.32-0.38.The adverse net tariff impact on EPS was ~$0.08, slightly better than the $0.09- 0.11 expected, which was offset by a $0.01-0.02 adverse impact on EPS from a higher-than-expected tax rate.Sales in the quarter increased 10.9% to $955.7MM, better than consensus of 5.7% and our estimate for 5.2% growth. 

MillerKnoll, Inc: 1QFY26 Beats Handily; Raising Estimates