Uncovering Potential: Advanced Drainage Systems's Earnings Preview

Advanced Drainage Systems WMS is gearing up to announce its quarterly earnings on Friday, 2024-11-08. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Advanced Drainage Systems will report an earnings per share (EPS) of $1.89.

Advanced Drainage Systems bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.01, leading to a 3.0% drop in the share price on the subsequent day.

Here's a look at Advanced Drainage Systems's past performance and the resulting price change:

Performance of Advanced Drainage Systems Shares

Shares of Advanced Drainage Systems were trading at $163.52 as of November 06. Over the last 52-week period, shares are up 42.82%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on Advanced Drainage Systems

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Advanced Drainage Systems.

A total of 4 analyst ratings have been received for Advanced Drainage Systems, with the consensus rating being Outperform. The average one-year price target stands at $188.25, suggesting a potential 15.12% upside.

Peer Ratings Comparison

The analysis below examines the analyst ratings and average 1-year price targets of Allegion, A.O. Smith and Fortune Brands, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for Allegion, with an average 1-year price target of $145.2, implying a potential 11.2% downside.
• For A.O. Smith, analysts project an Neutral trajectory, with an average 1-year price target of $83.0, indicating a potential 49.24% downside.
• For Fortune Brands, analysts project an Buy trajectory, with an average 1-year price target of $95.43, indicating a potential 41.64% downside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Allegion, A.O. Smith and Fortune Brands, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Advanced Drainage Systems ranks: - Top for Revenue Growth among peers. - Middle for Gross Profit among peers. - Top for Return on Equity among peers. Overall, Advanced Drainage Systems is performing well compared to its peers in terms of revenue growth and return on equity.

Unveiling the Story Behind Advanced Drainage Systems

Advanced Drainage Systems Inc is engaged in designing, manufacturing, and marketing thermoplastic corrugated pipe and related water management products in North and South America, and Europe. The company's operating segment includes Pipe; Infiltrator; International and Allied Products and Other. It generates maximum revenue from the Pipe segment. The company serves Agriculture; Aviation and Military; Mining; Residential; Transportation; Healthcare and Education and others.

Breaking Down Advanced Drainage Systems's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Advanced Drainage Systems's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.79%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Advanced Drainage Systems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.8% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 12.28%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Advanced Drainage Systems's ROA stands out, surpassing industry averages. With an impressive ROA of 4.81%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Advanced Drainage Systems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.0.

To track all earnings releases for Advanced Drainage Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.