Advanced Drainage Systems Set to Announce Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 37 minutes ago
0mins
Should l Buy WMS?
Source: seekingalpha
- Earnings Announcement Date: Advanced Drainage Systems (WMS) is set to release its Q4 earnings on May 21 before market open, with consensus EPS estimate at $0.97, reflecting a 5.8% year-over-year decline, while revenue is projected at $652.51 million, indicating a 6.0% year-over-year increase, which could influence investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, WMS has beaten EPS and revenue estimates 50% of the time, indicating a degree of volatility in financial forecasting, prompting investors to closely monitor the company's ongoing profitability and market adaptability.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates have also experienced one upward and two downward revisions, suggesting uncertainty in market expectations for the company's future performance, which may affect stock price volatility.
- Dividend Growth Outlook: The dividend preview for WMS indicates a continuation of its 11-year growth streak, reflecting the company's ongoing commitment to shareholder returns, which may attract investors seeking stable income opportunities.
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Analyst Views on WMS
Wall Street analysts forecast WMS stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 131.590
Low
168.00
Averages
178.67
High
197.00
Current: 131.590
Low
168.00
Averages
178.67
High
197.00
About WMS
Advanced Drainage Systems, Inc. is a manufacturer of stormwater and onsite wastewater solutions. The Company and its subsidiary, Infiltrator Water Technologies, LLC, provide stormwater drainage and onsite wastewater products used in a wide variety of markets and applications, including commercial, residential, infrastructure and agriculture, while delivering customer service. Its pipe segment manufactures and markets thermoplastic corrugated pipe throughout the United States. Its infiltrator segment is a provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Its international segment manufactures and markets products in regions outside the United States, with a strategy focused on its owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. Its other segments manufacture a range of allied products and other that are complementary to their pipe products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Advanced Drainage Systems Set to Announce Q4 Earnings
- Earnings Announcement Date: Advanced Drainage Systems (WMS) is set to release its Q4 earnings on May 21 before market open, with consensus EPS estimate at $0.97, reflecting a 5.8% year-over-year decline, while revenue is projected at $652.51 million, indicating a 6.0% year-over-year increase, which could influence investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, WMS has beaten EPS and revenue estimates 50% of the time, indicating a degree of volatility in financial forecasting, prompting investors to closely monitor the company's ongoing profitability and market adaptability.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates have also experienced one upward and two downward revisions, suggesting uncertainty in market expectations for the company's future performance, which may affect stock price volatility.
- Dividend Growth Outlook: The dividend preview for WMS indicates a continuation of its 11-year growth streak, reflecting the company's ongoing commitment to shareholder returns, which may attract investors seeking stable income opportunities.
See More
Advanced Drainage Systems Likely to Announce Dividend Increase
- Dividend Growth Expectation: Advanced Drainage Systems is likely to announce a dividend increase in May, continuing its 11-year streak of consecutive dividend growth, with analysts projecting an annual dividend of $0.72 per share, implying a quarterly dividend of approximately $0.18, unchanged from the previous payout.
- Historical Dividend Performance: The company last declared a dividend of $0.1800 per share in February 2026, yielding 0.51%, and raised its dividend by 12.5% from $0.1600 to $0.1800 in May 2024, demonstrating its consistent dividend growth capability.
- Dividend Growth Rate: Advanced Drainage Systems has achieved a 5-year dividend growth rate of approximately 14.87% while maintaining an annual payout ratio of 11.23%, indicating robust performance in profitability and cash flow management.
- Credit Rating Analysis: The company holds an A+ rating for safety, an A rating for growth, a D rating for yield, and a B- rating for dividend consistency, reflecting its trustworthiness among investors and overall market performance.
See More
ADVANCED DRAINAGE SYSTEMS INC.: BARCLAYS LOWERS TARGET PRICE FROM $198 TO $181
Company Overview: Advanced Drainage Systems Inc. is a company involved in the manufacturing of drainage systems.
Stock Price Adjustment: Barclays has reduced the target price for Advanced Drainage Systems' stock from $198 to $181.
See More
U.S. Stocks Decline as Oil Prices Surge
- Oil Price Surge: West Texas Intermediate crude jumped 6.5% to $79.7 per barrel, marking its highest level since January 2025 and an 18% increase for the week, exacerbating inflation fears and driving Treasury yields higher.
- Rising Treasury Yields: The 10-year U.S. Treasury yield climbed to 4.143%, while the 30-year yield rose to 4.754%, as markets accelerated their repricing of inflation risk, reflecting heightened investor anxiety over future rate policies.
- Major Indices Decline: The S&P 500 fell 0.7% to 6,820, and the Dow Jones Industrial Average dropped 826 points, or 1.9%, marking its steepest single-session loss since April 2025, indicating growing concerns about the economic outlook.
- Digital Assets Hit: Bitcoin fell 3.1% to $71,090.45, reflecting a risk-averse sentiment that spread to the digital asset market, with global markets declining in sympathy, particularly affecting stocks tied to global growth prospects.
See More
Wall Street Revives Heavy Asset Investment Strategy
- HALO Investment Concept: Investors on Wall Street are increasingly favoring companies with heavy assets like grids, pipelines, and heavy machinery, believing they are less likely to be replaced by AI; Josh Brown noted that these stocks have performed well this year, facing risks but potentially benefiting from AI advancements.
- Sector Performance Comparison: The energy and materials sectors have surged over 23% and 15%, respectively, while consumer staples have rallied over 14%, contrasting sharply with the S&P 500's slight gains, highlighting the robust performance of heavy asset industries against struggling tech stocks.
- Market Response and Strategy: A report from Barclays' trading desk indicated that HALO stocks have benefited from a
See More
Valuation Analysis of Advanced Drainage Systems
- Stock Performance: Advanced Drainage Systems' stock recently closed at $170.98, with a 7.3% return over the past 30 days, a 14.3% year-to-date return, and a 35.4% return over the last year, indicating volatility in the short term while showcasing long-term growth potential.
- Cash Flow Analysis: According to the Discounted Cash Flow (DCF) model, the company's free cash flow for the last twelve months was approximately $604.4 million, with projections dropping to $553.6 million by 2027, suggesting challenges in sustaining future cash flows.
- Valuation Outcome: The estimated intrinsic value per share is about $110.69 based on a two-stage DCF approach, indicating that the stock is overvalued by 54.5% compared to its current price, which may affect investor confidence.
- P/E Ratio Comparison: The current P/E ratio stands at 28.3x, exceeding the building industry average of 23.1x and the peer average of 21.0x, although it is below Simply Wall St's fair ratio of 30.5x, suggesting a relatively optimistic market outlook on its growth prospects.
See More
Advanced Drainage Systems Set to Announce Q4 Earnings
- Earnings Announcement Date: Advanced Drainage Systems (WMS) is set to release its Q4 earnings on May 21 before market open, with consensus EPS estimate at $0.97, reflecting a 5.8% year-over-year decline, while revenue is projected at $652.51 million, indicating a 6.0% year-over-year increase, which could influence investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, WMS has beaten EPS and revenue estimates 50% of the time, indicating a degree of volatility in financial forecasting, prompting investors to closely monitor the company's ongoing profitability and market adaptability.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates have also experienced one upward and two downward revisions, suggesting uncertainty in market expectations for the company's future performance, which may affect stock price volatility.
- Dividend Growth Outlook: The dividend preview for WMS indicates a continuation of its 11-year growth streak, reflecting the company's ongoing commitment to shareholder returns, which may attract investors seeking stable income opportunities.
See More
Advanced Drainage Systems Likely to Announce Dividend Increase
- Dividend Growth Expectation: Advanced Drainage Systems is likely to announce a dividend increase in May, continuing its 11-year streak of consecutive dividend growth, with analysts projecting an annual dividend of $0.72 per share, implying a quarterly dividend of approximately $0.18, unchanged from the previous payout.
- Historical Dividend Performance: The company last declared a dividend of $0.1800 per share in February 2026, yielding 0.51%, and raised its dividend by 12.5% from $0.1600 to $0.1800 in May 2024, demonstrating its consistent dividend growth capability.
- Dividend Growth Rate: Advanced Drainage Systems has achieved a 5-year dividend growth rate of approximately 14.87% while maintaining an annual payout ratio of 11.23%, indicating robust performance in profitability and cash flow management.
- Credit Rating Analysis: The company holds an A+ rating for safety, an A rating for growth, a D rating for yield, and a B- rating for dividend consistency, reflecting its trustworthiness among investors and overall market performance.
See More
ADVANCED DRAINAGE SYSTEMS INC.: BARCLAYS LOWERS TARGET PRICE FROM $198 TO $181
Company Overview: Advanced Drainage Systems Inc. is a company involved in the manufacturing of drainage systems.
Stock Price Adjustment: Barclays has reduced the target price for Advanced Drainage Systems' stock from $198 to $181.
See More
U.S. Stocks Decline as Oil Prices Surge
- Oil Price Surge: West Texas Intermediate crude jumped 6.5% to $79.7 per barrel, marking its highest level since January 2025 and an 18% increase for the week, exacerbating inflation fears and driving Treasury yields higher.
- Rising Treasury Yields: The 10-year U.S. Treasury yield climbed to 4.143%, while the 30-year yield rose to 4.754%, as markets accelerated their repricing of inflation risk, reflecting heightened investor anxiety over future rate policies.
- Major Indices Decline: The S&P 500 fell 0.7% to 6,820, and the Dow Jones Industrial Average dropped 826 points, or 1.9%, marking its steepest single-session loss since April 2025, indicating growing concerns about the economic outlook.
- Digital Assets Hit: Bitcoin fell 3.1% to $71,090.45, reflecting a risk-averse sentiment that spread to the digital asset market, with global markets declining in sympathy, particularly affecting stocks tied to global growth prospects.
See More
Wall Street Revives Heavy Asset Investment Strategy
- HALO Investment Concept: Investors on Wall Street are increasingly favoring companies with heavy assets like grids, pipelines, and heavy machinery, believing they are less likely to be replaced by AI; Josh Brown noted that these stocks have performed well this year, facing risks but potentially benefiting from AI advancements.
- Sector Performance Comparison: The energy and materials sectors have surged over 23% and 15%, respectively, while consumer staples have rallied over 14%, contrasting sharply with the S&P 500's slight gains, highlighting the robust performance of heavy asset industries against struggling tech stocks.
- Market Response and Strategy: A report from Barclays' trading desk indicated that HALO stocks have benefited from a
See More
Valuation Analysis of Advanced Drainage Systems
- Stock Performance: Advanced Drainage Systems' stock recently closed at $170.98, with a 7.3% return over the past 30 days, a 14.3% year-to-date return, and a 35.4% return over the last year, indicating volatility in the short term while showcasing long-term growth potential.
- Cash Flow Analysis: According to the Discounted Cash Flow (DCF) model, the company's free cash flow for the last twelve months was approximately $604.4 million, with projections dropping to $553.6 million by 2027, suggesting challenges in sustaining future cash flows.
- Valuation Outcome: The estimated intrinsic value per share is about $110.69 based on a two-stage DCF approach, indicating that the stock is overvalued by 54.5% compared to its current price, which may affect investor confidence.
- P/E Ratio Comparison: The current P/E ratio stands at 28.3x, exceeding the building industry average of 23.1x and the peer average of 21.0x, although it is below Simply Wall St's fair ratio of 30.5x, suggesting a relatively optimistic market outlook on its growth prospects.
See More
