Anticipation Builds for Xylem’s Upcoming Earnings Report
Company Profile and Upcoming Earnings
Xylem Inc. (XYL), with a market cap of $28.2 billion, stands as a prominent player in the global water solutions industry. The company manages the entire water process cycle, which involves collection, distribution, and environmental return. Through popular brands like Flygt, Goulds Water Technology, and Sensus, Xylem addresses various needs in water transportation, treatment, testing, and smart water management. The company, based in Washington, D.C., is set to announce its fiscal Q4 earnings on Tuesday, Feb. 4, before the market opens.
Analysts’ Earnings Predictions
Expectations are high as analysts predict the company will report a profit of $1.13 per share, marking a 14.1% increase from last year’s $0.99 per share. Historically, Xylem has demonstrated a strong ability to exceed Wall Street’s earnings estimates, with the last four quarterly reports supporting this trend. In the latest quarter, XYL met earnings expectations.
Future Earnings Outlook
For fiscal 2024, analysts forecast XYL to achieve an earnings per share (EPS) of $4.23, reflecting an 11.9% rise from the $3.78 per share reported in fiscal 2023. The growth trajectory appears promising, with EPS estimated to reach $4.70 in fiscal 2025, indicating an increase of 11.15% year-over-year.
Stock Performance and Market Challenges
Over the past year, Xylem’s stock has only increased by 1.6%, significantly lagging behind the broader S&P 500 Index’s ($SPX) 21.8% gain and the Industrial Select Sector SPDR Fund’s (XLI) 16.9% return during the same period.
Recent Earnings Report Impact
Xylem’s stock faced a decline of over 6% on Oct. 31 following mixed results from its Q3 earnings report. Revenue hit $2.1 billion, which was a slight 1% year-over-year increase, yet it fell short of market expectations. Despite adjusted net income meeting projections at $1.11 per share, the company described its revenue growth as “moderated” due to project timing, raising questions about its growth momentum. Furthermore, Xylem’s updated revenue guidance for 2024 was $8.5 billion, with adjusted net income anticipated between $4.22 and $4.24 per share, slightly below analyst forecasts.
Analysts’ Consensus on Xylem Stock
The consensus among analysts is cautiously optimistic, with an overall “Moderate Buy” rating for Xylem’s stock. Out of 17 analysts, 10 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and six advise a “Hold.” Currently, XYL trades below the average analyst price target of $151.64.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
