Stock Alert: Advanced Drainage Systems

(RTTNews) - Shares of water management products and services company, Advanced Drainage Systems, Inc. (WMS) closed at a new high of 39.94 yesterday. The stock is more than 60% up year-to-date.

The company has recently raised its FY2020 revenue outlook to the range of $1.6 billion - $1.65 billion from $1.575 billion - $1.625 billion. Analysts expect revenue of $1.64 billion.

Last month, the company reported 22% increase in revenue to $495.91 million from last year, helped partly by the contribution from Infiltrator Water Technologies, that Advanced Drainage Systems acquired for approximately $1.08 billion, in August. Infiltrator had approximately $275 million in revenue last year.

Net income fell to $6.2 million or $0.10 per share from $25.87 million or $0.45 per share in the corresponding quarter last year. The company had recorded a $37.3 million nonrecurring interest expense, associated with acquisition, in the second quarter of this year. Analysts' estimate stood at $0.51.

Net cash flow from operating activities increased to $171.71 million in the six months period ended September 30, 2019, from $58.16 million in the corresponding period last year.