Does Earnings Surprise History Hold Any Clue for Advanced Drainage Systems (NYSE:WMS)

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Earnings results for Advanced Drainage Systems (NYSE:WMS)

Advanced Drainage Systems, Inc. is expected* to report earnings on 11/05/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.04. The reported EPS for the same quarter last year was $0.1.

Advanced Drainage Systems last released its quarterly earnings results on August 6th, 2020. The construction company reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.18. The firm earned $508.60 million during the quarter, compared to the consensus estimate of $492.59 million. Its revenue was up 22.9% on a year-over-year basis. Advanced Drainage Systems has generated ($3.21) earnings per share over the last year and currently has a price-to-earnings ratio of 56.8. Advanced Drainage Systems has confirmed that its next quarterly earnings report will be published on Thursday, November 5th, 2020.

Analyst Opinion on Advanced Drainage Systems (NYSE:WMS)

6 Wall Street analysts have issued ratings and price targets for Advanced Drainage Systems in the last 12 months. Their average twelve-month price target is $59.60, predicting that the stock has a possible downside of 13.94%. The high price target for WMS is $77.00 and the low price target for WMS is $46.00. There are currently 1 sell rating, 1 hold rating and 4 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Advanced Drainage Systems has received a consensus rating of Buy. The company’s average rating score is 2.50, and is based on 4 buy ratings, 1 hold rating, and 1 sell rating. According to analysts’ consensus price target of $59.60, Advanced Drainage Systems has a forecasted downside of 13.9% from its current price of $69.25. Advanced Drainage Systems has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Advanced Drainage Systems (NYSE:WMS)

Advanced Drainage Systems has a dividend yield of 0.52%, which is in the bottom 25% of all stocks that pay dividends. Advanced Drainage Systems has been increasing its dividend for 5 years. Based on earnings estimates, Advanced Drainage Systems will have a dividend payout ratio of 13.85% next year. This indicates that Advanced Drainage Systems will be able to sustain or increase its dividend.

Insiders buying/selling: Advanced Drainage Systems (NYSE:WMS)

In the past three months, Advanced Drainage Systems insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $6,874,640.00 in company stock. Only 20.74% of the stock of Advanced Drainage Systems is held by insiders. 84.14% of the stock of Advanced Drainage Systems is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Advanced Drainage Systems (NYSE:WMS

Earnings for Advanced Drainage Systems are expected to grow by 1.96% in the coming year, from $2.55 to $2.60 per share. The P/E ratio of Advanced Drainage Systems is 56.76, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.27. The P/E ratio of Advanced Drainage Systems is 56.76, which means that it is trading at a more expensive P/E ratio than the Construction sector average P/E ratio of about 31.35. Advanced Drainage Systems has a PEG Ratio of 0.57. PEG Ratios below 1 indicate that a company could be undervalued. Advanced Drainage Systems has a P/B Ratio of 11.58. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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