Stock Story -
Water management company Advanced Drainage Systems (NYSE:WMS) will be announcing earnings results tomorrow before market hours. Here's what you need to know.
Advanced Drainage beat analysts' revenue expectations by 6.9% last quarter, reporting revenues of $653.8 million, up 5.9% year on year. It was a stunning quarter for the company, with a solid beat of analysts' earnings estimates.
Is Advanced Drainage a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Advanced Drainage's revenue to grow 6.9% year on year to $831.8 million, a reversal from the 14.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.07 per share.
The majority of analysts covering the company have 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 twice 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. AAON delivered year-on-year revenue growth of 10.4%, beating analysts' expectations by 10.5%, and CSW reported revenues up 11.2%, topping estimates by 4.9%. AAON traded down 1.3% following the results while CSW was up 5.1%.
Read the full analysis of AAON's and CSW's results on StockStory.
Investors in the hvac and water systems segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Advanced Drainage's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $192.4 (compared to the current share price of $154.18).
