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Xylem (XYL) Provides Update on Q2 results, Confirms Deal Wins
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Xylem Inc. (XYL - Free Report) provided its financial update for second-quarter results, considering the impacts of the coronavirus pandemic on its operational performance. Notably, the company’s share price increased 8.9% to eventually close at $73.33 yesterday.
Inside the Headlines
Xylem currently anticipates second-quarter adjusted earnings per share of 37-39 cents, whereas it reported 23 cents in the first quarter. Notably, on a reported basis, its quarterly earnings are likely to be 15-17 cents.
Also, for the second quarter, the company anticipates a year-over-year revenue decline of 14% (reported basis). Notably, for the quarter, the company’s organic revenues are expected to fall 12% on a year-over-year basis compared with a decline of 20-30% predicted earlier. It is worth mentioning that it recorded $1,123 million in the last reported quarter.
The Zacks Consensus Estimate for revenues is currently pegged at $999.7 million for the second quarter, which suggests a decline of 25.7% from the year-ago reported figure.
Moreover, Xylem communicated that it entered two significant contracts in the second quarter. Notably, it secured a large-scale irrigation project in India’s Telangana region, valued at about $115 million. The company anticipates realizing revenues from the deal over the next two to three years, commencing late in this year’s fourth quarter. In addition, it clinched a deal from Anglian Water in the U.K. for the deployment of software, smart metering and network solutions. This $90-million deal will yield revenue over the next five years, starting late this year.
Going forward, Xylem is expected to benefit from new products, innovation, growth initiatives and its focus on operational execution. However, weakness in end-markets caused by the coronavirus outbreak is predicted to impact its near-term results.
In the past three months, the company’s share price has increased 10.1% compared with the industry’s growth of 23.2%.
The Zacks Consensus Estimate for its earnings is pegged at $1.43 for 2020, marking a decline of 1.4% from the 60-day-ago figure.
Stocks to Consider
Some better-ranked stocks from the same space are Colfax Corporation , Chart Industries, Inc. (GTLS - Free Report) and The Middleby Corporation (MIDD - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy).
Colfax delivered a positive earnings surprise of 6.75%, on average, in the trailing four quarters.
Chart Industries delivered a positive earnings surprise of 1.41%, on average, in the trailing four quarters.
Middleby delivered a positive earnings surprise of 7.54%, on average, in the trailing four quarters.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Xylem (XYL) Provides Update on Q2 results, Confirms Deal Wins
Xylem Inc. (XYL - Free Report) provided its financial update for second-quarter results, considering the impacts of the coronavirus pandemic on its operational performance. Notably, the company’s share price increased 8.9% to eventually close at $73.33 yesterday.
Inside the Headlines
Xylem currently anticipates second-quarter adjusted earnings per share of 37-39 cents, whereas it reported 23 cents in the first quarter. Notably, on a reported basis, its quarterly earnings are likely to be 15-17 cents.
Also, for the second quarter, the company anticipates a year-over-year revenue decline of 14% (reported basis). Notably, for the quarter, the company’s organic revenues are expected to fall 12% on a year-over-year basis compared with a decline of 20-30% predicted earlier. It is worth mentioning that it recorded $1,123 million in the last reported quarter.
The Zacks Consensus Estimate for revenues is currently pegged at $999.7 million for the second quarter, which suggests a decline of 25.7% from the year-ago reported figure.
Moreover, Xylem communicated that it entered two significant contracts in the second quarter. Notably, it secured a large-scale irrigation project in India’s Telangana region, valued at about $115 million. The company anticipates realizing revenues from the deal over the next two to three years, commencing late in this year’s fourth quarter. In addition, it clinched a deal from Anglian Water in the U.K. for the deployment of software, smart metering and network solutions. This $90-million deal will yield revenue over the next five years, starting late this year.
Zacks Rank, Price Performance and Estimate Trend
The company, with a $13.2-billion market capitalization, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Going forward, Xylem is expected to benefit from new products, innovation, growth initiatives and its focus on operational execution. However, weakness in end-markets caused by the coronavirus outbreak is predicted to impact its near-term results.
In the past three months, the company’s share price has increased 10.1% compared with the industry’s growth of 23.2%.
The Zacks Consensus Estimate for its earnings is pegged at $1.43 for 2020, marking a decline of 1.4% from the 60-day-ago figure.
Stocks to Consider
Some better-ranked stocks from the same space are Colfax Corporation , Chart Industries, Inc. (GTLS - Free Report) and The Middleby Corporation (MIDD - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy).
Colfax delivered a positive earnings surprise of 6.75%, on average, in the trailing four quarters.
Chart Industries delivered a positive earnings surprise of 1.41%, on average, in the trailing four quarters.
Middleby delivered a positive earnings surprise of 7.54%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>