Advanced Drainage Systems (NYSE:WMS) shares fell more than 30% since the company’s reported Q2 results on Thursday. Quarterly EPS came in at $1.80, worse than the Street estimate of $1.89. Revenue was $884.2 million, missing the Street estimate of $925.05 million.

For fiscal 2023, the company expects revenue to be in the range of $3.1-3.2 billion, compared to the Street estimate of $3.33 billion. The company called out a "demand inflection" midway through the quarter in its residential end-markets, which when combined with improved lead times led to a quicker working down of backlogs as well as distributor inventory destocking in leach field chambers within Infiltrator.