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Advanced Drainage Systems Second Quarter 2023 Earnings: Misses Expectations

Advanced Drainage Systems (NYSE:WMS) Second Quarter 2023 Results

Key Financial Results

  • Revenue: US$884.2m (up 25% from 2Q 2022).

  • Net income: US$152.0m (up 141% from 2Q 2022).

  • Profit margin: 17% (up from 8.9% in 2Q 2022). The increase in margin was driven by higher revenue.

  • EPS: US$1.82 (up from US$0.90 in 2Q 2022).

earnings-and-revenue-growth
earnings-and-revenue-growth

All figures shown in the chart above are for the trailing 12 month (TTM) period

Advanced Drainage Systems Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) also missed analyst estimates by 5.8%.

Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 3.5% growth forecast for the Building industry in the US.

Performance of the American Building industry.

The company's shares are down 27% from a week ago.

Risk Analysis

We should say that we've discovered 3 warning signs for Advanced Drainage Systems that you should be aware of before investing here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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