Yahoo Finance Advanced Drainage (WMS) to Report Q4 Earnings: What to Expect
Advanced Drainage Systems, Inc. WMS is scheduled to report fourth-quarter fiscal 2024 results on May 16, before the opening bell.
In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 47.3% and 5.9%, respectively.
The company’s earnings surpassed expectations in each of the trailing four quarters, the average surprise being 37.1%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Advanced Drainage’s fiscal fourth-quarter adjusted earnings per share (EPS) increased in the past 30 days to 95 cents from 93 cents. The estimated figure reflects a 10.4% decline from earnings of $1.06 per share in the year-ago quarter.
Advanced Drainage Systems, Inc. Price and EPS Surprise
Advanced Drainage Systems, Inc. price-eps-surprise | Advanced Drainage Systems, Inc. Quote
The consensus estimate for net sales is pegged at $620 million, indicating a 0.4% increase from the prior-year quarter’s figure of $617.6 million.
Factors to Note
Advanced Drainage’s performance is expected to have improved year over year on the back of advancements in the U.S. residential and infrastructure construction along with agriculture end markets. Geographic-wise, under the Domestic segment, even though soft contributions from pipe sales are likely to have somewhat hindered prospects, notable sales growth in the allied products and other, and infiltrator business is expected to have aided the uptrend. Also, dwindled sales from the International segment are likely to have partially offset the growth prospects of the top line.
The Zacks Consensus Estimate for Domestic allied products and other, and infiltrator revenues is pegged at $152 million and $114 million, up year over year from $150 million and $103 million, respectively. Contrarily, the consensus mark for Domestic pipe revenues showcases a 4.2% year-over-year decline to $342 million. The revenues for the International segment are pegged at $33.76 million, down from $35.13 million reported a year ago.
Meanwhile, the bottom line of WMS is likely to have declined year over year due to increased selling, general and administrative along with interest expenses. That said, favorable material cost and sales mix are likely to have somewhat bode well during the quarter.
Advanced Drainage remains optimistic about its prospects in the near term and beyond given its strategic investments in new equipment, automation and tooling along with various cost-efficient initiatives. It believes that these accretive strategies are quite likely to enhance the operational efficiency and foster its growth prospects.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Advanced Drainage this time around. The company does not have the right combination of the two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: WMS has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Peer Releases
Janus International Group, Inc. JBI reported splendid results for first-quarter fiscal 2024, wherein earnings and revenues topped the Zacks Consensus Estimate and increased on a year-over-year basis.
The company’s growth trend was backed by improved market conditions, product mix and commercial actions. It witnessed solid contributions from its Self-Storage segment, which were somewhat offset by declines in the Commercial and Other segment. Also, positive impacts of segment mix and declines in material costs added to the uptick. Nonetheless, Janus is optimistic about its growth trajectory through 2024 given its varied and innovative mix of technology-driven product offerings, along with its resilient business model.
TopBuild Corp. BLD reported mixed first-quarter results wherein its earnings topped the Zacks Consensus Estimate but revenues missed the same. Nonetheless, both earnings and net sales grew on a year-over-year basis.
The company’s results reflect sequential improvements in single-family installation business along with notable contributions from multi-family and commercial installation businesses. Also, the contributions from the accretive acquisitions and favorable price mix added to the uptrend. The company intently focuses on improving its productivity and operational excellence to benefit its bottom line.
Gibraltar Industries, Inc. ROCK reported mixed first-quarter results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its growth prospects with its robust end-market fundamentals, backed by increased backlog levels.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
TopBuild Corp. (BLD) : Free Stock Analysis Report
Janus International Group, Inc. (JBI) : Free Stock Analysis Report
