Water technology company Xylem (NYSE: XYL) will be reporting earnings this Tuesday morning. Here’s what investors should know.
Xylem beat analysts’ revenue expectations last quarter, reporting revenues of $2.40 billion, up 6.3% year on year. It was a strong 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, the market is expecting Xylem’s revenue to grow 2% year on year, in line with the 1.8% increase it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 3.5%, and GE Aerospace reported revenues up 29%, topping estimates by 8.3%. Gorman-Rupp traded up 16.4% following the results while GE Aerospace was down 8.9%.
Read our full analysis of Gorman-Rupp’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 15% on average over the last month. Xylem is up 5.1% during the same time and is heading into earnings with an average analyst price target of $154 (compared to the current share price of $122.12).
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