NYSE$WMS
Advanced Drainage Systems Inc. · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
ADS reported strong Q2 fiscal 2021 results with increased net sales and profitability.
Advanced Drainage Systems announced a strong second quarter for fiscal year 2021, with net sales increasing by 9.7% to $544.2 million and net income increasing significantly to $80.6 million. The company's adjusted EBITDA also saw a substantial increase of 47.3% to $174.1 million. The company is optimistic about the second half of the fiscal year, expecting normal seasonal patterns and capitalizing on residential development and horizontal construction.
- Net sales increased by 9.7% to $544.2 million.
- Net income increased to $80.6 million, compared to $8.5 million in the prior year.
- Adjusted EBITDA (Non-GAAP) increased 47.3% to $174.1 million.
- The company's national presence and exposure to residential end market benefitted the results.
Headline financials
Revenue & EPS history
ADS · Revenue · Quarterly
$544M
Revenue by segment
ADS · $544M total across 5 segments · Q2 2021
- Domestic Pipe$290M+3.4%53.4%
- Domestic Allied Products$118M+3.2%21.7%
- Wastewater$87.3M+65.6%16.0%
- International$34.7M+0.2%6.4%
- International - Allied Products & Other$13.7M+4.1%2.5%
Forward guidance
ADS expects net sales to be in the range of $1.790 billion to $1.840 billion and Adjusted EBITDA to be in the range of $495 million to $515 million for fiscal year 2021. Capital expenditures are expected to be in the range of $80 million to $90 million.
Tailwinds
- Based on current orderbook and market trends.
- Visibility into the second half of fiscal 2021.
- Strong financial performance in the first half of fiscal 2021.
- Expect volume in the second half of the year to be consistent with the prior year, driven by seasonality.
- Expect modest improvement in year-over-year profitability despite inflationary pressure as well as investments in both capital and our organization to drive future value.
Headwinds
- Guidance does not contemplate any further change in economic conditions due to the COVID-19 pandemic.
- Inflationary pressure.
- Investments in capital.
- Investments in organization to drive future value.
- Uncertainties still exist regarding the broader market environment.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q2 2021
+3.7%
Avg return
Earnings day
+4.4%
Avg return
5 days after
+4.3%
Avg return
30 days after
71%
34 / 48 earnings
Positive
+18.1%
Q4 2018
Best reaction
-26.7%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +1.4% | +1.0% | +7.7% | |
| Q3 2026 | +6.1% | +9.2% | -8.8% | |
| Q2 2026 | +8.9% | +9.7% | +10.5% | |
| Q1 2026 | +17.3% | +20.1% | +30.3% | |
| Q4 2025 | -3.4% | -2.7% | -7.1% | |
| Q3 2025 | +1.4% | +9.5% | -1.0% | |
| Q2 2025 | -14.6% | -16.3% | -18.3% | |
| Q4 2024 | -1.2% | +1.7% | -3.0% | |
| Q3 2024 | +17.4% | +14.4% | +17.1% | |
| Q2 2024 | +4.1% | +3.5% | +16.0% | |
| Q1 2025 | +4.2% | +7.2% | +4.2% | |
| Q4 2023 | +8.9% | +8.3% | +24.6% | |
| Q3 2023 | -10.9% | -8.4% | -13.8% | |
| Q2 2023 | -26.7% | -25.0% | -16.0% | |
| Q1 2023 | +16.0% | +16.0% | +10.8% | |
| Q4 2022 | +5.7% | +7.6% | -17.6% | |
| Q3 2022 | +5.7% | +1.9% | +5.2% | |
| Q2 2022 | +10.6% | +18.4% | +11.9% | |
| Q1 2022 | -5.2% | -4.2% | -4.6% | |
| Q4 2021 | +5.9% | +8.8% | -3.3% | |
| Q3 2021 | +16.5% | +15.0% | +19.4% | |
| Q2 2021 | -5.1% | -7.8% | +11.5% | |
| Q1 2021 | +11.2% | +11.5% | +11.2% | |
| Q4 2020 | +7.1% | +6.1% | +17.6% | |
| Q3 2020 | +6.6% | +7.6% | +4.2% | |
| Q2 2020 | +0.0% | +1.4% | +1.6% | |
| Q1 2020 | +1.8% | +1.7% | -4.7% | |
| Q4 2019 | +9.2% | +6.5% | +13.7% | |
| Q3 2019 | -5.9% | -3.7% | -6.2% | |
| Q2 2019 | -3.7% | -8.4% | -11.0% | |
| Q1 2019 | +7.8% | +10.8% | +14.0% | |
| Q4 2018 | +18.1% | +15.0% | +11.6% | |
| Q3 2018 | +11.9% | +21.7% | +21.5% | |
| Q2 2018 | +10.1% | +11.1% | +21.4% | |
| Q1 2018 | +0.3% | +13.1% | -0.8% | |
| Q4 2017 | -4.4% | -8.3% | -7.4% | |
| Q3 2017 | +1.2% | -2.5% | -9.8% | |
| Q2 2017 | +5.1% | +1.1% | +7.5% | |
| Q1 2017 | -6.0% | -2.5% | -18.4% | |
| Q2 2016 | +9.5% | +7.9% | +11.1% | |
| Q4 2016 | +9.5% | +7.9% | +11.1% | |
| Q1 2016 | +0.4% | -1.6% | +11.2% | |
| Q3 2016 | +3.8% | +5.6% | +10.7% | |
| Q4 2015 | +9.4% | — | — | |
| Q3 2014 | -1.5% | — | — | |
| Q3 2015 | -0.0% | — | — | |
| Q2 2015 | +10.8% | — | — | |
| Q1 2015 | +3.2% | — | — | |
| Q4 2014 | — | — | — | |
| Q2 2014 | — | — | — | |
| Q1 2014 | — | — | — | |
| Q4 2013 | — | — | — | |
| Q3 2013 | — | — | — | |
| Q2 2013 | — | — | — |
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