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WMS Rises on Profit Increase

The slot machine maker raises guidance.
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WMS Industries

(WMS) - Get Advanced Drainage Systems, Inc. Report

were climbing some 12% in midday trading Tuesday, a day after the slot machine maker reported a rise in fiscal first-quarter profits.

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WMS reported net income of $7.1 million, or 20 cents a share, reflecting a 3-cent charge related to management changes. The results were up from the $6.1 million, or 18 cents a share, it posted in the prior-year period. Revenue was $110.6 million, up from $104.4 million a year ago. Analysts, on average, were expecting earnings of 21 cents a share before expenses, on nearly $114 million in revenue, according to Thomson First Call.

Looking forward, the Waukegan, Ill., company expects to generate revenue of $130 million to $135 million in the fiscal second quarter. For fiscal 2007, WMS raised its revenue guidance to a range of $525 million to $540 million, a increase of 16% to 20% over fiscal 2006.

Due to anticipated demand for its products from the new gaming in Pennsylvania, where the Gaming Control Board issued licenses to six racino operators, WMS expects record new unit shipments in fiscal 2007 to range from 25,300 to 27,000 units.

Shares were higher by $3.83, or 12.3%, at $34.88 Tuesday, having briefly hit $35.25 -- well above its 52-week high of $33.10.