Advanced Drainage Systems’ stock jumps after profit rises 83% (NYSE:WMS)

pamirc/iStock via Getty Images

Advanced Drainage Systems’ (NYSE:WMS) stock on Thursday jumped as much as 12% to the highest since early February after reporting results for its fiscal fourth quarter.

The maker of corrugated pipe said its net income rose 83% to $85.9 million, or $1.06 a share, from $46.3 million, or $0.54 a share, a year earlier. EPS beat the consensus estimate of $0.80 a share.

Sales declined 8.9% from a year earlier to $617.6 million, beating analysts' expectations of $567.1 million for the three-month period ended in March.

For the full year, net sales advanced 11% to $3.07 billion.

The company forecast sales of $2.6 billion to $2.8 billion for full-year 2024, compared with the consensus estimate of $2.86 billion.

"We will continue to work cost levers in order to maintain our profitability commitments while also managing our overall network and capital investments so that we are in a favorable position as the market rebounds," Scott Barbour, CEO of Advanced Drainage Systems (WMS), said in a statement. "The actions we took in the fiscal fourth quarter to reduce manufacturing and transportation costs were implemented successfully and are reflected in our fiscal 2024 guidance."

The company raised its dividend by 17% to $0.14 a share.

"The need for water-management solutions remains highly relevant despite the short-term weakness in market demand,” Barbour said. “We are actively engaging with communities that are improving standards for stormwater and onsite septic wastewater management.”

Seeking Alpha contributor GS Analytics has a Buy rating on Advanced Drainage Systems (WMS) on its long-term growth. Contributor Prasanna Rajagopal rates Advanced Drainage Systems (WMS) as a Hold on difficult comparables.

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.