Besides Wall Street's top -and-bottom-line estimates for Xylem (XYL), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Xylem (XYL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Xylem Inc. is the global leader in water technology, offering comprehensive water solutions and has shown strong financial growth both organically and through strategic acquisitions like Evoqua. Despite a high valuation vs the market, Xylem's long-term tailwinds, defensive cashflows, and historical uptrend make it a compelling buy for growth-focused investors. The company's current valuation has historically proven to be a good entry point to accumulate shares in this high-quality name.
Xylem shares have pulled back 20% from 2024 highs due to high valuations, a slight correction in outlook, and rising interest rates. Despite the pullback, Xylem remains a solid operator in a well-positioned industry, with valuation multiples becoming more appealing on further dips. Xylem's growth is driven by acquisitions like Evoqua, complementing a sound positioning of the business itself, with sales doubling over a decade and margins improving.
The acquisition of a majority stake in Idrica is set to enable XYL to penetrate new markets and deliver intelligent solutions to its customers.
XYL experiences weakness in its operations due to softness in the Applied Water segment. Rising costs are added concerns.
Xylem provides water technology solutions for commercial and residential customers. The company benefits from an extremely favorable supply-demand setup and its roster of products designed to help with these water-related issues. Already, Xylem has increased its dividend for 14 consecutive years. The 10-year dividend growth rate is 11%, which is strong. Xylem has a very solid financial position. The long-term debt/equity ratio is 0.2, while the interest coverage ratio is nearly 17.
No one likes it when their investment posts a double miss on yearly guidance.
Xylem Inc. (NYSE:XYL ) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET Company Participants Keith Buettner - Vice President, Investor Relations & Financial Planning & Analysis Matthew Pine - Chief Executive Officer Bill Grogan - Chief Financial Officer Conference Call Participants Deane Dray - RBC Capital Markets Mike Halloran - Baird Scott Davis - Melius Research Nathan Jones - Stifel Brett Linzey - Mizuho Operator Welcome to Xylem's Third Quarter 2024 Results Conference Call. All participants will be in listen-only mode.
XYL's third-quarter 2024 organic revenues increase 1% year over year, driven by the impressive performances of its Measurement & Control and Water Infrastructure segments.
Although the revenue and EPS for Xylem (XYL) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Xylem (XYL) came out with quarterly earnings of $1.11 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.99 per share a year ago.