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 last quarter, reporting revenues of $1.00 billion, up 20.6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS 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, the market is expecting Advanced Drainage’s revenue to grow 8.9% year on year, in line with the 8.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Advanced Drainage has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Advanced Drainage’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Northwest Pipe delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 6.9%, and Carrier Global reported revenues up 12.3%, topping estimates by 2.6%. Northwest Pipe traded down 1.7% following the results while Carrier Global was also down 4.7%.
Read our full analysis of Northwest Pipe’s results here and Carrier Global’s results here.
Investors in the hvac and water systems segment have had steady hands going into earnings, with share prices flat over the last month. Advanced Drainage is up 5.1% during the same time and is heading into earnings with an average analyst price target of $181.73 (compared to the current share price of $136.01).
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