Water technology company Xylem (NYSE: XYL) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Xylem beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $2.30 billion, up 6.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA 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 5.8% year on year to $2.23 billion, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.23 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 2.1% on average.
Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 36.2%, beating analysts’ expectations by 11.7%, and Gorman-Rupp reported revenues up 2.8%, falling short of estimates by 1%. GE Aerospace traded down 1.6% following the results.
Read our full analysis of GE Aerospace’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.7% on average over the last month. Xylem is up 2.6% during the same time and is heading into earnings with an average analyst price target of $158.67 (compared to the current share price of $147.75).
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