NYSE$WMS
Advanced Drainage Systems Inc. · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
ADS reported Q4 2023 earnings, with net sales decreasing but net income increasing.
ADS announced mixed results for Q4 2023. While net sales decreased by 8.9% to $617.6 million, net income increased significantly by 83.1% to $86.3 million. Adjusted EBITDA also saw a slight increase of 2.1% to $172.0 million.
- Net sales decreased by 8.9% to $617.6 million.
- Net income increased by 83.1% to $86.3 million.
- Adjusted EBITDA increased by 2.1% to $172.0 million.
- Adjusted EBITDA margin increased to a new fourth quarter record of 27.8%.
Headline financials
Revenue & EPS history
ADS · Revenue · Quarterly
$618M
Revenue by segment
ADS · $618M total across 5 segments · Q4 2023
- Domestic Pipe$347M-10.7%56.2%
- Domestic Allied Products$148M+0.1%24.0%
- Wastewater$87.7M-18.0%14.2%
- International$24.4M+2.9%4.0%
- International - Allied Products & Other$10M-5.4%1.6%
Forward guidance
The Company issued targets for fiscal year 2024, anticipating net sales between $2.600 billion and $2.800 billion and Adjusted EBITDA in the range of $725 to $825 million. Capital expenditures are expected to be between $200 million and $225 million.
Tailwinds
- Focus on growth opportunities in the Infrastructure and Agriculture markets.
- Pursuit of onshoring projects to bolster domestic operations.
- Market penetration strategies for products like HP pipe to drive growth.
- Leveraging proven go-to-market capabilities to enhance sales.
- Continued cost management to maintain profitability commitments.
Headwinds
- Challenging economic fundamentals in residential and non-residential markets.
- Potential weakness in core non-residential and residential end markets.
- Inflationary cost pressures impacting profitability.
- Lower Infiltrator volume affecting overall sales.
- Lower fixed cost absorption from reduced production over the last two quarters.
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 2023
+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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