Water technology company Xylem (NYSE: XYL) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Xylem beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $2.07 billion, up 1.8% year on year. It was a very strong 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.
This quarter, analysts are expecting Xylem’s revenue to grow 1.8% year on year to $2.21 billion, slowing from the 26% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.15 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 6 upward revisions over the last 30 days (we track 14 analysts). Xylem has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 11.6%, beating analysts’ expectations by 6.5%, and Gorman-Rupp reported revenues up 5.6%, topping estimates by 2.5%. GE Aerospace traded down 1.1% following the results while Gorman-Rupp was up 9.9%.
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 5.5% on average over the last month. Xylem is up 2% during the same time and is heading into earnings with an average analyst price target of $145.31 (compared to the current share price of $131.96).
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