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The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised upward by a penny in the past 60 days. XYL also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 13.3%.
Let’s see how things have shaped up for Xylem this earnings season.
Strong demand across end markets and price realization are expected to have driven Xylem’s fourth-quarter performance.
The Water Infrastructure segment is expected to have benefited from effective price realization, robust transport demand in Western Europe and healthy activity in the wastewater utility business in the United States and Western Europe.
Strong price realization and backlog execution in industrial, commercial and residential end markets are expected to have driven performance of the Applied Water segment. The Zacks Consensus Estimate for Applied Water segment revenues in the fourth quarter indicates a 30.8% jump from the year-ago reported number.
The Measurement & Control Solutions segment is expected to reflect higher revenues on the back of robust demand in the advanced metering infrastructure end market and improvement in chip supply. The consensus mark for Measurement & Control Solutions revenues in the fourth quarter hints at a 21.7% rise from the year-ago reported number.
While the situation has improved, supply-chain disruptions continue to be a major challenge for Xylem. Higher lead times and lower volumes due to supply-chain constraints might have weighed on XYL’s performance in the fourth quarter.
High raw material, labor, freight and overhead costs are likely to have impacted Xylem’s bottom-line performance. Given the company’s substantial international presence, foreign currency headwinds are likely to have hurt its top line.
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Xylem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Xylem has an Earnings ESP of +0.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xylem currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Xylem’s third-quarter 2022 adjusted earnings of 79 cents per share surpassed the Zacks Consensus Estimate of 66 cents. The bottom line increased 25.4% year over year. Total revenues of $1,380 million also outperformed the Zacks Consensus Estimate of $1,330 million and inched up approximately 9.1% year over year. Organic sales in the quarter rose 16%.
Other Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
Caterpillar (CAT - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is scheduled to release fourth-quarter earnings numbers on Jan 31.
The Zacks Consensus Estimate for Caterpillar’s fourth-quarter earnings has been revised upward by 3.7% in the past 90 days. CAT pulled off a trailing four-quarter earnings surprise of 14.7%, on average.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2. The company is slated to release fourth-quarter financial numbers on Jan 31.
The Zacks Consensus Estimate for IDEX’s fourth-quarter earnings has been revised upward by 1% in the past 90 days. IEX delivered a trailing four-quarter earnings surprise of 3.7%, on average.
Image: Bigstock
Can Xylem (XYL) Retain Beat Streak This Earnings Season?
Xylem Inc. (XYL - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 7, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised upward by a penny in the past 60 days. XYL also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 13.3%.
Let’s see how things have shaped up for Xylem this earnings season.
Xylem Inc. Price and EPS Surprise
Xylem Inc. price-eps-surprise | Xylem Inc. Quote
Factors to Note
Strong demand across end markets and price realization are expected to have driven Xylem’s fourth-quarter performance.
The Water Infrastructure segment is expected to have benefited from effective price realization, robust transport demand in Western Europe and healthy activity in the wastewater utility business in the United States and Western Europe.
Strong price realization and backlog execution in industrial, commercial and residential end markets are expected to have driven performance of the Applied Water segment. The Zacks Consensus Estimate for Applied Water segment revenues in the fourth quarter indicates a 30.8% jump from the year-ago reported number.
The Measurement & Control Solutions segment is expected to reflect higher revenues on the back of robust demand in the advanced metering infrastructure end market and improvement in chip supply. The consensus mark for Measurement & Control Solutions revenues in the fourth quarter hints at a 21.7% rise from the year-ago reported number.
While the situation has improved, supply-chain disruptions continue to be a major challenge for Xylem. Higher lead times and lower volumes due to supply-chain constraints might have weighed on XYL’s performance in the fourth quarter.
High raw material, labor, freight and overhead costs are likely to have impacted Xylem’s bottom-line performance. Given the company’s substantial international presence, foreign currency headwinds are likely to have hurt its top line.
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for Xylem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Xylem has an Earnings ESP of +0.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xylem currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Xylem’s third-quarter 2022 adjusted earnings of 79 cents per share surpassed the Zacks Consensus Estimate of 66 cents. The bottom line increased 25.4% year over year. Total revenues of $1,380 million also outperformed the Zacks Consensus Estimate of $1,330 million and inched up approximately 9.1% year over year. Organic sales in the quarter rose 16%.
Other Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
Caterpillar (CAT - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is scheduled to release fourth-quarter earnings numbers on Jan 31.
The Zacks Consensus Estimate for Caterpillar’s fourth-quarter earnings has been revised upward by 3.7% in the past 90 days. CAT pulled off a trailing four-quarter earnings surprise of 14.7%, on average.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2. The company is slated to release fourth-quarter financial numbers on Jan 31.
The Zacks Consensus Estimate for IDEX’s fourth-quarter earnings has been revised upward by 1% in the past 90 days. IEX delivered a trailing four-quarter earnings surprise of 3.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.