Xylem Earnings Preview: What to Expect

Xylem Inc. (XYL), headquartered in Washington, District of Columbia, designs, manufactures, and services engineered products and solutions. With a market cap of $33.3 billion, the company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment. The leading global water technology company is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Oct. 31. 

Ahead of the event, analysts expect XYL to report a profit of $1.11 per share on a diluted basis, up 12.1% from $0.99 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect XYL to report EPS of $4.26, up 12.7% from $3.78 in fiscal 2023. Its EPS is expected to rise 12.9% year over year to $4.81 in fiscal 2025. 

XYL stock has outperformed the S&P 500’s ($SPX) 34.4% gains over the past 52 weeks, with shares up 51.6% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 35.8% gains over the same time frame.

Xylem's impressive success can be credited to a combination of factors, including increased demand for its measurement & control solutions, significant growth in both water infrastructure and water solutions segments, and the strategic acquisition of Evoqua. This acquisition has strengthened Xylem's water treatment offerings and revenue streams, contributing to its overall strong performance.

On Jul. 30, XYL shares closed down more than 5% after reporting its Q2 results. Its adjusted EPS of $1.09 beat Wall Street expectations of $1.06. The company’s revenue was $2.17 billion, topping Wall Street forecasts of $2.16 billion. XYL expects full-year adjusted EPS to be between $4.18 and $4.28.

Analysts’ consensus opinion on XYL stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 18 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and seven give a “Hold.” XYL’s average analyst price target is $156.40, indicating a potential upside of 14.4% from the current levels.

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On the date of publication, Neha Panjwani 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.