Water technology company Xylem (NYSE:XYL) will be reporting earnings this Tuesday before the bell. Here’s what to expect.
Xylem beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.27 billion, up 7.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Xylem a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Xylem’s revenue to grow 5% year on year to $2.37 billion, slowing from the 6.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xylem has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2%, and Arrow Electronics reported revenues up 20.1%, topping estimates by 6.6%. Mueller Water Products traded up 1.1% following the results while Arrow Electronics was also up 12.4%.
Read our full analysis of Mueller Water Products’s results here and Arrow Electronics’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 7.7% on average over the last month. Xylem is up 2.2% during the same time and is heading into earnings with an average analyst price target of $166.59 (compared to the current share price of $142.11).
P.S. STOP buying the AI stocks everyone's talking about. The real money? It’s in the profitable pick nobody’s watching yet. We’ve identified an AI profit machine that’s flying under Wall Street’s radar—for now. We can’t keep this research public forever—grab your FREE copy before we pull it offline. GO HERE NOW.