Water management company Advanced Drainage Systems (NYSE: WMS) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
Advanced Drainage beat analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $850.4 million, up 8.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Advanced Drainage a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Advanced Drainage’s revenue to be flat year on year at $685.6 million, slowing from the 4.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advanced Drainage has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Advanced Drainage’s peers in the hvac and water systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Zurn Elkay delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 1.4%, and Trane Technologies reported revenues up 5.5%, topping estimates by 0.8%. Trane Technologies traded up 6.7% following the results.
Read our full analysis of Zurn Elkay’s results here and Trane Technologies’s results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 8.5% on average over the last month. Advanced Drainage is up 3% during the same time and is heading into earnings with an average analyst price target of $175.90 (compared to the current share price of $156.31).
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