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 residential, commercial, and agricultural applications....

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of the company's profitability and financial health this quarter.

N/A

Revenue Growth

Understanding revenue growth will help gauge demand for drainage products amid changing market conditions.

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 residential, commercial, and agricultural applications. As part of the industrials sector, the company plays a crucial role in infrastructure development and environmental sustainability.

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 Q4-2026, WMS reported an EPS of $1.07, beating estimates by 7%. However, the stock saw a slight decline of 1.23% the following day.

Management Promises & Guidance

Focus on improving operational efficiencies.
Commitment to expanding product offerings.
Plans to enhance customer service and support.

Expectations

Wall Street Expectations

Overall, expectations are mixed as WMS has shown both strong and weak earnings surprises in recent quarters. Investors are keen to see if the company can maintain its growth trajectory.

Bull Case

If WMS can deliver strong EPS and revenue growth, it may signal robust demand for its products, leading to a positive market reaction.

Bear Case

Conversely, if the company misses earnings expectations or provides weak guidance, it could raise concerns about its market position and growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to last quarter's $1.07?

The EPS figure will be critical in assessing the company's profitability and growth momentum.

How is the company managing its operating margins in the current economic environment?

Operating margins are essential for understanding the company's efficiency and ability to navigate cost pressures.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for WMS to capitalize on increased infrastructure spending, which could drive higher demand for its products.

Supporting Evidence

Options are pricing a 19.04% move, indicating high expectations that may not be justified by historical performance.

The company's recent EPS surprises show a mixed track record, suggesting potential for a positive surprise this quarter.

Key Risk

If EPS comes in above $1.20, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will reflect the company's ability to sustain growth amid economic challenges.

Bull Confirmed If

An EPS of $1.20 or higher would confirm the bull case and suggest strong demand.

Bear Confirmed If

An EPS below $0.90 would confirm the bear case, indicating potential issues with profitability.

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 announcement.

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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 24 (25%)

This setup has occurred 30 times across Industrials in the last 2 years. 18 of 24 (75%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.8%, with a raw directional average of +1.9% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If WMS beats expectations, history suggests the stock could rise by around 1.9%, confirming a positive outlook.

In-Line / Cautious

An in-line result may lead to a muted response, with the stock likely reacting cautiously as investors await further guidance.

Miss

If the company misses earnings expectations, history suggests a potential decline of about 1.4%, raising concerns about future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or innovations.
2Insights into customer demand trends in key markets.
3Management's outlook on operational efficiencies.
4Comments on supply chain challenges and how they are being addressed.
5Guidance on future revenue expectations.

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Company Snapshot

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

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of the company's profitability and financial health this quarter.

N/A

Revenue Growth

Understanding revenue growth will help gauge demand for drainage products amid changing market conditions.

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 Q4-2026, WMS reported an EPS of $1.07, beating estimates by 7%. However, the stock saw a slight decline of 1.23% the following day.

Management Promises & Guidance

Focus on improving operational efficiencies.
Commitment to expanding product offerings.
Plans to enhance customer service and support.

Expectations

Wall Street Expectations

Overall, expectations are mixed as WMS has shown both strong and weak earnings surprises in recent quarters. Investors are keen to see if the company can maintain its growth trajectory.

Bull Case

If WMS can deliver strong EPS and revenue growth, it may signal robust demand for its products, leading to a positive market reaction.

Bear Case

Conversely, if the company misses earnings expectations or provides weak guidance, it could raise concerns about its market position and growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to last quarter's $1.07?

The EPS figure will be critical in assessing the company's profitability and growth momentum.

How is the company managing its operating margins in the current economic environment?

Operating margins are essential for understanding the company's efficiency and ability to navigate cost pressures.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for WMS to capitalize on increased infrastructure spending, which could drive higher demand for its products.

Supporting Evidence

Options are pricing a 19.04% move, indicating high expectations that may not be justified by historical performance.

The company's recent EPS surprises show a mixed track record, suggesting potential for a positive surprise this quarter.

Key Risk

If EPS comes in above $1.20, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will reflect the company's ability to sustain growth amid economic challenges.

Bull Confirmed If

An EPS of $1.20 or higher would confirm the bull case and suggest strong demand.

Bear Confirmed If

An EPS below $0.90 would confirm the bear case, indicating potential issues with profitability.

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 announcement.

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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 24 (25%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If WMS beats expectations, history suggests the stock could rise by around 1.9%, confirming a positive outlook.

In-Line / Cautious

An in-line result may lead to a muted response, with the stock likely reacting cautiously as investors await further guidance.

Miss

If the company misses earnings expectations, history suggests a potential decline of about 1.4%, raising concerns about future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or innovations.
2Insights into customer demand trends in key markets.
3Management's outlook on operational efficiencies.
4Comments on supply chain challenges and how they are being addressed.
5Guidance on future revenue expectations.