Key Highlights:
- Advanced Drainage Systems (WMS, Financial) saw a decline in Q4 earnings, missing revenue estimates significantly.
- Despite challenges, Infiltrator sales rose impressively by over 15%.
- Analysts foresee a potential 19% upside from the current stock price.
Advanced Drainage Systems' Quarterly Performance
In its latest financial release, Advanced Drainage Systems (WMS) disclosed a fourth-quarter non-GAAP earnings per share of $1.03, which fell short of expectations by $0.07. The company reported a revenue decline of 5.8% year-over-year, bringing in $615.8 million. This was a miss compared to estimates, with a shortfall of $37.42 million. Notably, while there was a downturn in domestic pipe and allied products sales, the Infiltrator segment offered a silver lining with a remarkable 15.3% increase in sales, totaling $122.3 million.
Wall Street Analysts' Forecast
Turning a spotlight on analyst perspectives, Advanced Drainage Systems Inc (WMS, Financial) is projected to reach an average target price of $144.80 over the next year, according to forecasts from 10 analysts. Their estimates range from a high of $165.00 to a low of $130.00. This average target price suggests a promising potential upside of 19.00% from the current trading price of $121.68. For a deep dive into these projections, visit the Advanced Drainage Systems Inc (WMS) Forecast page.
Brokerage Firms' Recommendations
The consensus recommendation among nine brokerage firms rates Advanced Drainage Systems Inc (WMS, Financial) at 1.8, characterized as "Outperform." This rating reflects a scale where 1 signifies a Strong Buy and 5 indicates a Sell.
GF Value Estimation
From the viewpoint of GuruFocus, the estimated GF Value for Advanced Drainage Systems Inc (WMS, Financial) in one year's time stands at $132.76. This estimate points to an upside potential of 9.11% from the current price standing at $121.68. The GF Value is GuruFocus' calculated fair market value based on historical trading multiples, past business growth, and future business performance estimates. For more comprehensive insights, visit the Advanced Drainage Systems Inc (WMS) Summary page.
