By Dean Seal
Shares of Advanced Drainage Systems slid after the company said weak demand conditions during its latest completed quarter resulted in a smaller profit and declining revenue.
The stock was down 6.4% at $113.93 in late morning trading Thursday. Shares are now in negative territory year-to-date.
The water management company posted a profit of $77.2 million, or 99 cents a share, for the first three months of the year. That's down from $94.8 million, or $1.21 a share, in the comparable quarter a year earlier.
Stripping out one-time items, adjusted earnings were $1.03 a share, 3 cents shy of the consensus estimate of $1.06 analysts polled by FactSet expected.
Revenue fell 5.8% to $615.8 million, below analyst projections for $658.9 million, according to FactSet.
Chief Executive Scott Barbour said the company is facing waning demand from higher interest rates and continuing economic uncertainty. Tough winter weather conditions also weighed on the quarter, compared with a year-earlier period that had very favorable weather.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 15, 2025 11:18 ET (15:18 GMT)
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