NYSE$WMS

Advanced Drainage Systems Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

ADS reported a strong Q4 2022 with significant sales and income growth.

Advanced Drainage Systems (ADS) announced strong financial results for the fourth quarter and fiscal year ended March 31, 2022. Net sales increased by 52.8% to $678.2 million, and net income increased by 126.8% to $47.1 million. The company's performance was driven by favorable pricing and volume growth in domestic construction markets.

  • Net sales increased 52.8% to $678.2 million.
  • Net income increased 126.8% to $47.1 million.
  • Adjusted EBITDA increased 78.2% to $168.5 million.
  • Domestic pipe sales increased 65.8% to $396.7 million.

Headline financials

Total Revenue

$678M

Previous: $444M+52.8%
EPS (adj)

$0.95

Previous: $0.23+313.0%
Capital Expenditures

$48.7M

Previous: $21.1M+131.1%
Free Cash Flow

$32.3M

Previous: -$17.6M+283.2%
Net Income

$47.1M

Previous: $20.8M+126.7%
Operating Income

$80.8M

Previous: $32.9M+145.6%
Gross Profit

$190M

Previous: $127M+49.5%
Cash & Equivalents

$20.1M

Previous: $195M-89.7%
Total Assets

$2.65B

Previous: $2.41B+9.8%

Revenue & EPS history

ADS · Revenue · Quarterly

$678M

Q4 2022+52.8%vs Q4 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

ADS · $678M total across 5 segments · Q4 2022

  • Domestic Pipe
    $389M+63.5%
  • Domestic Allied Products
    $148M+51.3%
  • Wastewater
    $107M+39.7%
  • International
    $23.7M+5.7%
  • International - Allied Products & Other
    $10.6M+15.4%

Forward guidance

The Company issued the following targets for fiscal 2023: Net sales are expected to be in the range of $3.100 billion to $3.200 billion. Adjusted EBITDA is expected to be in the range of $800 to $820 million. Capital expenditures are expected to be in the range of $150 million to $180 million.

Tailwinds

  • Net sales are expected to be in the range of $3.100 billion to $3.200 billion.
  • Adjusted EBITDA is expected to be in the range of $800 to $820 million.
  • Capital expenditures are expected to be in the range of $150 million to $180 million.

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 Q4 2022

Historical avgQ4 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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