Stock Alert: Shares Of Advanced Drainage Systems Inc. (WMS) Hit Multi-Year High

(RTTNews) - Shares of Advanced Drainage Systems Inc. (WMS), water management solutions provider, touched a multi-year high of $39.94 on December 18, and closed Wednesday's trading session at $39.94, up $1.49 or 3.88%.

Highlights

* Infiltrator Water Technologies acquisition enhances growth, margins and cash flow profile, while providing significant opportunities to capture synergies. * Positioned for continued above-market growth in fiscal 2020 due to material conversion strategy and strong growth of key products. * Focused on building shareholder value through sustained profitability improvements, cash generation and disciplined execution. * Steady demand in core domestic construction markets expected to continue.

Q2 Performance

The Hilliard, Ohio-based company's strong Q2 results were driven by the traditional legacy ADS levers of strong growth in both pipe and Allied products, favorable pricing and material cost and disciplined execution, including its working capital initiatives, as well as the acquisition of Infiltrator Water Technologies.

The company raised its fiscal 2020 outlook due to the strong sales growth and profitability improvement through the first half of fiscal 2020.

Advanced Drainage Systems' Q2 net income was $6.20 million or $0.10 per share compared to $25.9 million or $0.45 per share last year.

Net sales increased 22.0% to $495.9 million from $406.6 million in the prior year period, driven by 9% organic growth and two months of contribution from Infiltrator Water Technologies.

FY20 Outlook

For fiscal 2020, the company now expects net sales to be in the range of $1.60 billion - $1.65 billion, compared to the previously communicated range of $1.575 billion - $1.625 billion. Capital expenditures are expected to be in the range of $85 million - $100 million for 2020.