Shares of Select Water Solutions surged on Wednesday following the company's optimistic outlook for its water infrastructure segment.
Stock Performance
The stock saw a 12% increase, reaching a new 52-week high of $8.77 during late morning trading. So far this year, the shares have risen by approximately 16%.
Segment Growth Forecast
Select Water Solutions, based in Houston and specializing in water management and chemical manufacturing solutions for the oil and gas industry, announced an anticipated revenue growth of 30% to 40% in its water infrastructure business for 2024. Moreover, the company expects a significant increase in segment profit ranging from 40% to 50%.
CEO Statement
CEO John Schmitz expressed confidence in the company's growth trajectory, noting substantial demand for new infrastructure development across all basins despite fluctuations in commodity prices and activity levels.
Financial Performance
In the fourth quarter, Select reported a profit of $27.6 million, or 27 cents per share, showing a marked improvement from the $7.65 million profit, or 7 cents per share, recorded the previous year. Analysts surveyed by FactSet had predicted a per-share profit of 15 cents.
However, revenue experienced a slight decline of 1.8% to $374.9 million, falling short of the $378.1 million forecasted by analysts.
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