Water management company Advanced Drainage Systems (NYSE:WMS) will be reporting results this Thursday before the bell. Here’s what investors should know.
Advanced Drainage beat analysts’ revenue expectations last quarter, reporting revenues of $676.8 million, up 9.9% year on year. It was a strong quarter for the company, with an impressive 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 18.3% year on year, improving from the 1.8% 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 Q2 results, giving us a hint as to what we can expect. Northwest Pipe delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 3.1%, and Carrier Global reported revenues up 3.9%, topping estimates by 5.6%. Northwest Pipe traded up 3% following the results while Carrier Global was down 13.6%.
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 down 1.1% during the same time and is heading into earnings with an average analyst price target of $180.64 (compared to the current share price of $149.72).
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