Advanced Drainage Systems, Inc. (WMS)

Advanced Drainage Systems beat expectations on both the top and bottom line in the first fiscal quarter of 2027, reported on Aug. 6, as revenue rose 20.6% to about $1.0 billion and came in 1.0% above the $991.4 million estimate, while adjusted EPS of $2.49 topped the $2.10 consensus by 18.6%. The company also said revenue was up from $829.9 million a year ago, with gross margin near 41% and operating margin about 25%, pointing to a quarter that converted the higher sales base into steady profitability. Net income climbed 17.1% to about $168.5 million from $143.9 million a year earlier, and operating cash flow reached about $260.4 million. Advanced Drainage Systems returned capital through about $233.2 million of stock repurchases and about $15.3 million in dividends. For the next period, consensus calls for EPS of $1.89 on revenue of $930.2 million.