Water management company Advanced Drainage Systems (NYSE:WMS) will be reporting results tomorrow before market hours. Here’s what to expect.
Advanced Drainage beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $690.5 million, up 4.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ Pipe revenue estimates but a significant miss of analysts’ EPS estimates.
Is Advanced Drainage a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Advanced Drainage’s revenue to be flat year on year at $660.4 million, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.10 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 Q1 results, giving us a hint as to what we can expect. AAON delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 10.9%, and Trane Technologies reported revenues up 11.2%, topping estimates by 5%. AAON traded up 6.1% following the results while Trane Technologies was also up 11%.
Read our full analysis of AAON’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 17.2% on average over the last month. Advanced Drainage is up 17.7% during the same time and is heading into earnings with an average analyst price target of $144.78 (compared to the current share price of $123.55).
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