Water management company Advanced Drainage Systems (NYSE:WMS) will be reporting earnings tomorrow before the bell. Here’s what to expect.

Advanced Drainage missed analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $782.6 million, flat year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.

Is Advanced Drainage a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Advanced Drainage’s revenue to grow 2% year on year to $675.4 million, in line with the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.21 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advanced Drainage has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Advanced Drainage’s peers in the hvac and water systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 8.9%, and Trane Technologies reported revenues up 10.2%, topping estimates by 1.9%. Lennox traded down 8.5% following the results while Trane Technologies’s stock price was unchanged.

Read our full analysis of Lennox’s results here and Trane Technologies’s results here.

Investors in the hvac and water systems segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Advanced Drainage is up 3.2% during the same time and is heading into earnings with an average analyst price target of $162.63 (compared to the current share price of $117.56).

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