Equity Profile

WMS

Advanced Drainage Systems, Inc.

IndustrialsBuilding Products$11.3B

Aug6Thu

Pre-Earnings Brief

UpcomingQ1-2027Pre-Market9:00 AM EDT

Company Snapshot

Advanced Drainage Systems, Inc. (WMS) is a leading manufacturer of water management products, primarily focusing on drainage solutions for construction and agricultural applications....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help gauge how well it has managed costs and revenue.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet demand in the building products industry.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WMS Q1-2027 Earnings Preview

Context

Company Snapshot

Advanced Drainage Systems, Inc. (WMS) is a leading manufacturer of water management products, primarily focusing on drainage solutions for construction and agricultural applications. As part of the industrials sector, the company plays a crucial role in infrastructure development, which is essential for managing water resources effectively.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

38%

Avg EPS Surprise

-11.12%

Avg Stock Reaction

+1.59%

Last Quarter Recap

In the last quarter, Advanced Drainage Systems reported an EPS of $1.07, beating estimates by 7%. However, the stock reacted negatively, declining by 1.23% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations are mixed as the company has shown both strong and weak earnings surprises in recent quarters. Investors are keen to see if the company can maintain profitability amid fluctuating demand.

Bull Case

If the company can deliver strong EPS and revenue growth, it may signal robust demand for its products, leading to increased investor confidence.

Bear Case

Conversely, if the company reports disappointing earnings or guidance, it could raise concerns about its market position and future growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter?

EPS is a critical measure of profitability, and a significant deviation from expectations could lead to a strong market reaction.

How is the company addressing supply chain challenges?

Given the current economic climate, understanding how the company manages its supply chain will be crucial for assessing future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the impact of recent infrastructure spending increases, which could drive higher demand for drainage products.

Supporting Evidence

Options pricing suggests a larger move than historical averages, indicating heightened investor sentiment.

The company's recent EPS surprises show its ability to outperform expectations, suggesting potential for continued growth.

Recent trends in construction and infrastructure development could lead to increased sales that analysts may not fully account for.

Key Risk

If the company reports strong revenue growth driven by infrastructure projects, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around the company's ability to navigate economic challenges while maintaining profitability.

Bull Confirmed If

An EPS of $1.20 or higher would confirm the bull case, indicating strong demand and cost management.

Bear Confirmed If

An EPS below $0.90 would support the bear case, raising concerns about profitability and market share.

Pre-Earnings Positioning

Options Market

Implied Move

±19.04%

Historical Avg

±6.8%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±19.0% while WMS has averaged ±6.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

38.8%

Calls (600)P/C Ratio: 0.50Puts (300)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If the company beats expectations, history suggests a potential average one-day move of +1.90%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted response as investors await further commentary from management.

Miss

A miss could lead to a decline, with history suggesting an average one-day move of +1.40%, indicating market disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on supply chain management and its impact on production.
2Details on revenue growth from specific product lines.
3Management's outlook on future demand in the construction sector.
4Insights into cost management strategies and their effectiveness.
5Any commentary on competitive pressures and market share.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Aug3

ONBMO

ON Semiconductor Corporation

PreviewView

Aug3

LBMO

Company Snapshot

Advanced Drainage Systems, Inc. (WMS) is a leading manufacturer of water management products, primarily focusing on drainage solutions for construction and agricultural applications....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help gauge how well it has managed costs and revenue.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet demand in the building products industry.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WMS Q1-2027 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

38%

Avg EPS Surprise

-11.12%

Avg Stock Reaction

+1.59%

Last Quarter Recap

In the last quarter, Advanced Drainage Systems reported an EPS of $1.07, beating estimates by 7%. However, the stock reacted negatively, declining by 1.23% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If the company can deliver strong EPS and revenue growth, it may signal robust demand for its products, leading to increased investor confidence.

Bear Case

Conversely, if the company reports disappointing earnings or guidance, it could raise concerns about its market position and future growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter?

EPS is a critical measure of profitability, and a significant deviation from expectations could lead to a strong market reaction.

How is the company addressing supply chain challenges?

Given the current economic climate, understanding how the company manages its supply chain will be crucial for assessing future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the impact of recent infrastructure spending increases, which could drive higher demand for drainage products.

Supporting Evidence

Options pricing suggests a larger move than historical averages, indicating heightened investor sentiment.

The company's recent EPS surprises show its ability to outperform expectations, suggesting potential for continued growth.

Recent trends in construction and infrastructure development could lead to increased sales that analysts may not fully account for.

Key Risk

If the company reports strong revenue growth driven by infrastructure projects, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around the company's ability to navigate economic challenges while maintaining profitability.

Bull Confirmed If

An EPS of $1.20 or higher would confirm the bull case, indicating strong demand and cost management.

Bear Confirmed If

An EPS below $0.90 would support the bear case, raising concerns about profitability and market share.

Pre-Earnings Positioning

Options Market

Implied Move

±19.04%

Historical Avg

±6.8%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±19.0% while WMS has averaged ±6.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

38.8%

Calls (600)P/C Ratio: 0.50Puts (300)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If the company beats expectations, history suggests a potential average one-day move of +1.90%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted response as investors await further commentary from management.

Miss

A miss could lead to a decline, with history suggesting an average one-day move of +1.40%, indicating market disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on supply chain management and its impact on production.
2Details on revenue growth from specific product lines.
3Management's outlook on future demand in the construction sector.
4Insights into cost management strategies and their effectiveness.
5Any commentary on competitive pressures and market share.