Advanced Drainage Q3 revenue beats estimates; new $1 bln buyback
Overview
Water management firm's Q3 revenue rose slightly, beating analyst expectations
Adjusted EPS for Q3 exceeded analyst estimates
Company announced new $1 bln stock repurchase authorization
Outlook
Company expects fiscal 2026 net sales between $2.990 bln and $3.040 bln
Company anticipates fiscal 2026 adjusted EBITDA between $930 mln and $960 mln
Company sees challenging macroeconomic environment impacting fiscal 2026
Result Drivers
PRODUCT MIX SHIFT - Co's strategic shift towards higher-margin products and favorable price/cost dynamics contributed to increased profitability
INFILTRATOR AND ALLIED PRODUCTS - Growth in Infiltrator business and Allied products portfolio drove sales increase
NDS ACQUISITION - Recent acquisition of NDS expected to enhance product offerings and distribution channels
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $693.35 mln | $685.35 mln (9 Analysts) |
Q3 Adjusted EPS | Beat | $1.27 | $1.11 (6 Analysts) |
Q3 EPS |
| $1.19 |
|
Q3 Net Income |
| $94.04 mln |
|
Q3 Adjusted EBITDA | Beat | $209.20 mln | $194.20 mln (8 Analysts) |
Q3 Operating Income |
| $136.82 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Advanced Drainage Systems Inc is $178.00, about 11.1% above its February 4 closing price of $160.26
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago
Press Release: ID:nBw45VcWwa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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