Advanced Drainage Systems (NYSE:WMS) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• Advanced Drainage Systems reported earnings of $1.95 EPS for the quarter, exceeding estimates by $0.17, with revenues of $829.88 million also surpassing projections.
• Despite the positive earnings report, shares of Advanced Drainage Systems dropped 1.4% to $131.64 during midday trading.
• The company announced a quarterly dividend of $0.18 per share, set to be paid on September 15th, representing a 0.5% dividend yield.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) announced its earnings results on Thursday. The construction company reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.78 by $0.17, Zacks reports. The company had revenue of $829.88 million during the quarter, compared to analyst estimates of $800.54 million. Advanced Drainage Systems had a net margin of 14.82% and a return on equity of 29.57%. The firm's quarterly revenue was up 1.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.06 earnings per share. Advanced Drainage Systems updated its FY 2026 guidance to EPS.

Advanced Drainage Systems Stock Down 1.4%

Shares of NYSE WMS traded down $1.88 during midday trading on Friday, reaching $131.64. 1,002,467 shares of the company's stock traded hands, compared to its average volume of 719,529. The company has a quick ratio of 2.10, a current ratio of 3.22 and a debt-to-equity ratio of 0.82. The stock's 50 day simple moving average is $116.38 and its 200-day simple moving average is $114.45. Advanced Drainage Systems has a one year low of $93.92 and a one year high of $166.03. The company has a market cap of $10.22 billion, a price-to-earnings ratio of 23.76, a P/E/G ratio of 1.94 and a beta of 1.27.

Advanced Drainage Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be paid a dividend of $0.18 per share. The ex-dividend date is Friday, August 29th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.5%. Advanced Drainage Systems's dividend payout ratio (DPR) is currently 12.50%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on WMS shares. KeyCorp increased their price target on shares of Advanced Drainage Systems from $140.00 to $159.00 and gave the stock an "overweight" rating in a research note on Friday. Robert W. Baird dropped their price target on shares of Advanced Drainage Systems from $146.00 to $141.00 and set an "outperform" rating on the stock in a research note on Friday, May 16th. UBS Group reiterated a "buy" rating and issued a $167.00 price target (up from $146.00) on shares of Advanced Drainage Systems in a report on Friday. Loop Capital dropped their price objective on shares of Advanced Drainage Systems from $143.00 to $133.00 and set a "buy" rating for the company in a research note on Friday, May 16th. Finally, Wall Street Zen raised shares of Advanced Drainage Systems from a "sell" rating to a "hold" rating in a research note on Saturday. Two analysts have rated the stock with a hold rating and seven have given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $148.63.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.

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