Advanced Drainage Systems (NYSE:WMS) Posts Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Advanced Drainage Systems (NYSE:WMS) released its quarterly earnings results on Thursday. The construction company reported $1.97 earnings per share for the quarter, beating analysts’ consensus estimates of $1.70 by $0.27, Zacks reports. Advanced Drainage Systems had a net margin of 14.82% and a return on equity of 29.57%. The company had revenue of $850.38 million for the quarter, compared to analyst estimates of $802.49 million. During the same period last year, the firm earned $1.70 earnings per share. The firm’s revenue was up 8.7% on a year-over-year basis. Advanced Drainage Systems updated its FY 2026 guidance to EPS.

Advanced Drainage Systems Stock Performance

Shares of Advanced Drainage Systems stock traded up $1.54 during trading hours on Friday, reaching $148.12. The company had a trading volume of 711,917 shares, compared to its average volume of 724,625. The firm has a market cap of $11.52 billion, a PE ratio of 26.74, a price-to-earnings-growth ratio of 1.88 and a beta of 1.33. Advanced Drainage Systems has a one year low of $93.92 and a one year high of $153.25. The company has a debt-to-equity ratio of 0.82, a current ratio of 3.22 and a quick ratio of 2.25. The business has a fifty day simple moving average of $141.33 and a 200 day simple moving average of $127.23.

Advanced Drainage Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Monday, December 1st. Advanced Drainage Systems’s dividend payout ratio (DPR) is presently 13.00%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on WMS shares. Royal Bank Of Canada boosted their target price on Advanced Drainage Systems from $158.00 to $168.00 and gave the stock an “outperform” rating in a research note on Friday. KeyCorp boosted their target price on shares of Advanced Drainage Systems from $159.00 to $170.00 and gave the company an “overweight” rating in a research note on Friday. UBS Group restated a “buy” rating and set a $167.00 price target (up previously from $146.00) on shares of Advanced Drainage Systems in a research note on Friday, August 8th. Wall Street Zen upgraded Advanced Drainage Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Advanced Drainage Systems in a research report on Wednesday, October 8th. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $156.56.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC grew its holdings in Advanced Drainage Systems by 1,209.7% during the 2nd quarter. Squarepoint Ops LLC now owns 260,607 shares of the construction company’s stock valued at $29,933,000 after buying an additional 240,709 shares in the last quarter. Adage Capital Partners GP L.L.C. boosted its position in shares of Advanced Drainage Systems by 327.3% in the second quarter. Adage Capital Partners GP L.L.C. now owns 235,000 shares of the construction company’s stock valued at $26,992,000 after acquiring an additional 180,000 shares during the period. Sei Investments Co. grew its stake in Advanced Drainage Systems by 363.7% during the second quarter. Sei Investments Co. now owns 187,270 shares of the construction company’s stock valued at $21,509,000 after acquiring an additional 146,884 shares in the last quarter. Bank of America Corp DE increased its holdings in Advanced Drainage Systems by 27.1% during the 2nd quarter. Bank of America Corp DE now owns 555,841 shares of the construction company’s stock worth $63,844,000 after acquiring an additional 118,586 shares during the period. Finally, Man Group plc increased its holdings in Advanced Drainage Systems by 114.4% during the 2nd quarter. Man Group plc now owns 155,934 shares of the construction company’s stock worth $17,911,000 after acquiring an additional 83,220 shares during the period. Institutional investors own 89.83% of the company’s stock.

Advanced Drainage Systems Company Profile

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.