Why Advanced Drainage Systems Stock Popped Today
Shares of pipe maker Advanced Drainage Systems (NYSE: WMS) were up 8.8% through 11:15 a.m. ET on Thursday after the company reported a big earnings beat this morning.
Analysts had forecast that the infrastructure company would earn $0.77 per share on $562.8 million in sales in its fiscal 2023 fourth quarter. In fact, it earned $1.06 per share, and sales were $617.6 million.
Not all the news was great. Although sales exceeded expectations, Advanced Drainage Systems' revenue still fell 9% year over year. Nevertheless, earnings nearly doubled as the company's cost of goods sold plummeted, and management whittled away at operating costs.
Source Fool.com
