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The Zacks Consensus Estimate for XYL’s second-quarter earnings has been revised downward by a penny in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.3%.
Let’s see how things are shaping up for Xylem this earnings season.
Solid backlog level, effective pricing and focus on operational execution are likely to have aided Xylem’s second-quarter performance.
Business growth in North America and Europe is likely to have benefited the wastewater utilities business. Strengthening test business and rising demand for smart water solutions are expected to have aided the clean water utilities business. Strengthening Europe business and robust replacement business in the United States are expected to have driven performance in the commercial market.
However, supply chain restrictions are expected to have hurt the Measurement & Control Solutions segment’s performance in the to-be-reported quarter. Xylem expects organic sales in the Measurement & Control Solutions segment to decline in low-double digits for the second quarter.
Escalating costs associated with raw material, labor, freight and overhead might have hurt XYL’s bottom line in the quarter. Foreign-currency-related headwinds are also likely to have impacted the company’s second-quarter performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict 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, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Xylem has an Earnings ESP of 0.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xylem carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
Xylem’s adjusted earnings of 47 cents per share surpassed the Zacks Consensus Estimate of 42 cents. However, the bottom line declined year over year due to high costs. The company’s revenues of $1,272 million outperformed the Zacks Consensus Estimate of $1,227 million. The top line rose year over year due to higher demand across end markets as well as record order and backlog levels.
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 have the right combination of elements to beat on earnings this reporting cycle.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. The company is slated to release second-quarter 2022 financial numbers on Jul 25.
The Zacks Consensus Estimate for Crane Holdings’ second-quarter earnings has been revised upward by 4.1% in the past 60 days. CR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
The Zacks Consensus Estimate for Zebra Technologies’ second-quarter earnings has remained steady over the past 60 days. ZBRA’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.8%.
MRC Global (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.
The Zacks Consensus Estimate for MRC Global’s second-quarter earnings has been revised upward by 13.6% in the past 60 days. MRC’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting estimates in one. The average surprise was 140.8%.
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Will Supply Chain & Cost Woes Mar Xylem's (XYL) Q2 Earnings?
Xylem Inc. (XYL - Free Report) is scheduled to release second-quarter 2022 financial numbers on Aug 2, before market open.
The Zacks Consensus Estimate for XYL’s second-quarter earnings has been revised downward by a penny in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.3%.
Let’s see how things are shaping up for Xylem this earnings season.
Xylem Inc. Price and EPS Surprise
Xylem Inc. price-eps-surprise | Xylem Inc. Quote
Factors to Note
Solid backlog level, effective pricing and focus on operational execution are likely to have aided Xylem’s second-quarter performance.
Business growth in North America and Europe is likely to have benefited the wastewater utilities business. Strengthening test business and rising demand for smart water solutions are expected to have aided the clean water utilities business. Strengthening Europe business and robust replacement business in the United States are expected to have driven performance in the commercial market.
However, supply chain restrictions are expected to have hurt the Measurement & Control Solutions segment’s performance in the to-be-reported quarter. Xylem expects organic sales in the Measurement & Control Solutions segment to decline in low-double digits for the second quarter.
Escalating costs associated with raw material, labor, freight and overhead might have hurt XYL’s bottom line in the quarter. Foreign-currency-related headwinds are also likely to have impacted the company’s second-quarter performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict 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, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Xylem has an Earnings ESP of 0.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xylem carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
Xylem’s adjusted earnings of 47 cents per share surpassed the Zacks Consensus Estimate of 42 cents. However, the bottom line declined year over year due to high costs. The company’s revenues of $1,272 million outperformed the Zacks Consensus Estimate of $1,227 million. The top line rose year over year due to higher demand across end markets as well as record order and backlog levels.
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 have the right combination of elements to beat on earnings this reporting cycle.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. The company is slated to release second-quarter 2022 financial numbers on Jul 25.
The Zacks Consensus Estimate for Crane Holdings’ second-quarter earnings has been revised upward by 4.1% in the past 60 days. CR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
The Zacks Consensus Estimate for Zebra Technologies’ second-quarter earnings has remained steady over the past 60 days. ZBRA’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.8%.
MRC Global (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.
The Zacks Consensus Estimate for MRC Global’s second-quarter earnings has been revised upward by 13.6% in the past 60 days. MRC’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting estimates in one. The average surprise was 140.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.