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A Look Ahead: Advanced Drainage Systems's Earnings Forecast

Author: Benzinga Insights | August 06, 2025 01:07pm

Advanced Drainage Systems (NYSE:WMS) will release its quarterly earnings report on Thursday, 2025-08-07. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Advanced Drainage Systems to report an earnings per share (EPS) of $1.77.

The announcement from Advanced Drainage Systems is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.07, leading to a 3.68% increase in the share price on the subsequent day.

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

Quarter Q4 2025 Q3 2025 Q2 2025 Q1 2025
EPS Estimate 1.10 1.21 1.89 2.07
EPS Actual 1.03 1.09 1.70 2.06
Price Change % 4.0% 2.0% -14.000000000000002% -3.0%

eps graph

Performance of Advanced Drainage Systems Shares

Shares of Advanced Drainage Systems were trading at $117.09 as of August 05. Over the last 52-week period, shares are down 21.03%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on Advanced Drainage Systems

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Advanced Drainage Systems.

A total of 5 analyst ratings have been received for Advanced Drainage Systems, with the consensus rating being Outperform. The average one-year price target stands at $143.0, suggesting a potential 22.13% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Armstrong World Indus, A.O. Smith and Simpson Manufacturing Co, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for Armstrong World Indus, with an average 1-year price target of $185.83, suggesting a potential 58.71% upside.
  • Analysts currently favor an Neutral trajectory for A.O. Smith, with an average 1-year price target of $81.0, suggesting a potential 30.82% downside.
  • Analysts currently favor an Neutral trajectory for Simpson Manufacturing Co, with an average 1-year price target of $185.0, suggesting a potential 58.0% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Armstrong World Indus, A.O. Smith and Simpson Manufacturing Co, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Advanced Drainage Systems Outperform -5.82% $226.25M 4.88%
Armstrong World Indus Neutral 16.30% $175.80M 10.77%
A.O. Smith Neutral -1.27% $397.10M 8.22%
Simpson Manufacturing Co Neutral 17.10% $252.04M 5.43%

Key Takeaway:

Advanced Drainage Systems ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom.

Unveiling the Story Behind Advanced Drainage Systems

Advanced Drainage Systems Inc is the manufacturer of water management solutions in the stormwater and onsite septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplaces. Its products are used across a broad range of end markets and applications, including residential, non-residential, infrastructure and agriculture applications. It operates business in three distinct reportable segments: Pipe; International, and Infiltrator. It generates a greater proportion of revenue from its Pipe segment, which consists of Pipe product sales in the United States. The Infiltrator is a provider of plastic leachfield chambers and systems, septic tanks and accessories, for use in residential applications.

Financial Milestones: Advanced Drainage Systems's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Advanced Drainage Systems's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -5.82%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Advanced Drainage Systems's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 12.53%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.88%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Advanced Drainage Systems's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.12%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Advanced Drainage Systems's debt-to-equity ratio is below the industry average. With a ratio of 0.89, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.

Posted In: WMS

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