Advanced Drainage Systems (NYSE:WMS) Shares Down 8.5% on Disappointing Earnings

Advanced Drainage Systems, Inc. (NYSE:WMS)’s share price fell 8.5% on Friday following a dissappointing earnings announcement. The company traded as low as $141.74 and last traded at $145.44. 134,266 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 483,529 shares. The stock had previously closed at $159.00.

The construction company reported $1.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.93 by ($0.23). The company had revenue of $782.60 million for the quarter, compared to the consensus estimate of $819.41 million. Advanced Drainage Systems had a return on equity of 43.60% and a net margin of 17.09%. Advanced Drainage Systems’s quarterly revenue was up .3% on a year-over-year basis. During the same quarter last year, the business posted $1.71 EPS.

Advanced Drainage Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be paid a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 0.47%. The ex-dividend date of this dividend is Monday, December 2nd. Advanced Drainage Systems’s payout ratio is presently 10.13%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on WMS shares. Loop Capital decreased their price target on shares of Advanced Drainage Systems from $188.00 to $180.00 and set a “buy” rating for the company in a report on Monday, August 12th. StockNews.com lowered Advanced Drainage Systems from a “buy” rating to a “hold” rating in a research report on Wednesday, July 17th. Robert W. Baird cut their price objective on Advanced Drainage Systems from $200.00 to $187.00 and set an “outperform” rating on the stock in a report on Friday, August 9th. Barclays lowered their target price on Advanced Drainage Systems from $202.00 to $194.00 and set an “overweight” rating for the company in a research note on Friday, August 9th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $192.00 price target on shares of Advanced Drainage Systems in a research note on Thursday, August 15th. One equities research analyst has rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $190.14.

Institutional Investors Weigh In On Advanced Drainage Systems

Institutional investors have recently bought and sold shares of the company. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Advanced Drainage Systems by 319.4% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 151 shares of the construction company’s stock valued at $26,000 after purchasing an additional 115 shares during the last quarter. West Oak Capital LLC increased its stake in Advanced Drainage Systems by 133.3% in the 2nd quarter. West Oak Capital LLC now owns 175 shares of the construction company’s stock valued at $28,000 after buying an additional 100 shares during the last quarter. Blue Trust Inc. lifted its position in Advanced Drainage Systems by 1,472.7% during the 2nd quarter. Blue Trust Inc. now owns 173 shares of the construction company’s stock worth $30,000 after buying an additional 162 shares in the last quarter. National Bank of Canada FI bought a new stake in Advanced Drainage Systems during the 2nd quarter worth about $45,000. Finally, Huntington National Bank boosted its stake in shares of Advanced Drainage Systems by 123.1% during the 3rd quarter. Huntington National Bank now owns 386 shares of the construction company’s stock worth $61,000 after buying an additional 213 shares during the last quarter. Institutional investors own 89.83% of the company’s stock.

Advanced Drainage Systems Price Performance

The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.90 and a current ratio of 2.89. The company has a fifty day moving average price of $151.62 and a two-hundred day moving average price of $159.76. The company has a market cap of $10.56 billion, a P/E ratio of 21.54, a PEG ratio of 1.38 and a beta of 1.53.

About Advanced Drainage Systems

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.