Latest news with #AdvancedDrainage
Business Insider
2 days ago
- Business
- Business Insider
Advanced Drainage price target lowered to $133 from $143 at Loop Capital
Loop Capital analyst Garik Shmois lowered the firm's price target on Advanced Drainage (WMS) to $133 from $143 but keeps a Buy rating on the shares. The company missed on Q4 EBITDA and guided below expectations as the weak macro is weighing on the outlook, though its view of lower end market demand across most categories also makes sense, the analyst tells investors in a research note. Given that pricing trends appear to be stabilizing and that there's line of sight towards lower raw materials however, the guide should be viewed as establishing a floor for earnings, Loop adds. Confident Investing Starts Here:
Business Insider
2 days ago
- Business
- Business Insider
Advanced Drainage price target lowered to $146 from $155 at UBS
UBS analyst John Lovallo lowered the firm's price target on Advanced Drainage (WMS) to $146 from $155 and keeps a Buy rating on the shares. The firm lowered its estimates following the Q4 report, but while the fiscal 2026 outlook was soft as expected, margins remain resilient, the analyst tells investors in a research note. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Business Insider
2 days ago
- Business
- Business Insider
Advanced Drainage price target lowered to $141 from $146 at Baird
Baird analyst Michael Halloran lowered the firm's price target on Advanced Drainage (WMS) to $141 from $146 and keeps an Outperform rating on the shares. The firm updated its model as they see the company's end markets headwinds reamining but its execution and outgrowth is strong. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
15-05-2025
- Business
- Yahoo
Advanced Drainage (NYSE:WMS) Misses Q1 Sales Targets
Water management company Advanced Drainage Systems (NYSE:WMS) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 5.8% year on year to $615.8 million. The company's full-year revenue guidance of $2.9 billion at the midpoint came in 7.6% below analysts' estimates. Its non-GAAP profit of $1.03 per share was 6.2% below analysts' consensus estimates. Is now the time to buy Advanced Drainage? Find out in our full research report. Revenue: $615.8 million vs analyst estimates of $660.4 million (5.8% year-on-year decline, 6.8% miss) Adjusted EPS: $1.03 vs analyst expectations of $1.10 (6.2% miss) Adjusted EBITDA: $176.7 million vs analyst estimates of $184.1 million (28.7% margin, 4% miss) Management's revenue guidance for the upcoming financial year 2026 is $2.9 billion at the midpoint, missing analyst estimates by 7.6% and implying -0.1% growth (vs 0.9% in FY2025) EBITDA guidance for the upcoming financial year 2026 is $880 million at the midpoint, below analyst estimates of $937.6 million "demand continues to be impacted by higher interest rates and economic uncertainty. In addition, the fourth quarter had unfavorable winter weather conditions this year against an already difficult comparison of very favorable weather in the prior year" Operating Margin: 19%, down from 20.7% in the same quarter last year Free Cash Flow was -$5.31 million compared to -$29.76 million in the same quarter last year Market Capitalization: $9.44 billion Scott Barbour, President and Chief Executive Officer of ADS, commented, "In Fiscal 2025, domestic construction market sales increased 3% as we continued to drive above market performance through our material conversion strategy in the stormwater and onsite wastewater markets. Importantly, organic sales in our most profitable segments, Infiltrator and Allied Products, increased 4.6% and 2.5%, respectively, and the onsite wastewater and Allied products now represent a collective 44% of revenue. The resiliency demonstrated by this year's 30.6% Adjusted EBITDA margin is due in part to our strategy to grow these more profitable products to be a higher mix of the overall sales." Originally started as a farm water drainage company, Advanced Drainage Systems (NYSE:WMS) provides clean water management solutions to communities across America. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Advanced Drainage grew its sales at an impressive 11.7% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Advanced Drainage's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.8% over the last two years. Advanced Drainage also breaks out the revenue for its most important segments, Pipe and Infiltrators, which are 51.7% and 19.9% of revenue. Over the last two years, Advanced Drainage's Pipe revenue (thermoplastic corrugated pipes) averaged 6.6% year-on-year declines. On the other hand, its Infiltrators revenue (wastewater treatment systems) averaged 10% growth. This quarter, Advanced Drainage missed Wall Street's estimates and reported a rather uninspiring 5.8% year-on-year revenue decline, generating $615.8 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 6.2% over the next 12 months. While this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Advanced Drainage has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 21.1%. This result isn't too surprising as its gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Advanced Drainage's operating margin rose by 5.3 percentage points over the last five years, as its sales growth gave it immense operating leverage. In Q1, Advanced Drainage generated an operating profit margin of 19%, down 1.7 percentage points year on year. Since Advanced Drainage's gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Advanced Drainage's EPS grew at an astounding 83.9% compounded annual growth rate over the last five years, higher than its 11.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Advanced Drainage's earnings to better understand the drivers of its performance. As we mentioned earlier, Advanced Drainage's operating margin declined this quarter but expanded by 5.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Advanced Drainage, its two-year annual EPS declines of 2.5% mark a reversal from its (seemingly) healthy five-year trend. We hope Advanced Drainage can return to earnings growth in the future. In Q1, Advanced Drainage reported EPS at $1.03, down from $1.23 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Advanced Drainage's full-year EPS of $5.87 to grow 7.7%. We struggled to find many positives in these results. Its Infiltrators revenue missed and its full-year revenue guidance fell short of Wall Street's estimates. Management stated that "demand continues to be impacted by higher interest rates and economic uncertainty. In addition, the fourth quarter had unfavorable winter weather conditions this year against an already difficult comparison of very favorable weather in the prior year". Overall, this was a weaker quarter. The stock remained flat at $120.69 immediately following the results. The latest quarter from Advanced Drainage's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
14-05-2025
- Business
- Yahoo
Advanced Drainage (WMS) To Report Earnings Tomorrow: Here Is What To Expect
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). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Sign in to access your portfolio
