We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xylem Inc.’s (XYL - Free Report) first-quarter 2024 adjusted earnings of 90 cents per share surpassed the Zacks Consensus Estimate of 84 cents. Also, the bottom line increased 14% year over year.
XYL’s revenues of $2.03 billion outperformed the Zacks Consensus Estimate of $2.00 billion. The top line jumped 40% year over year, driven by strong commercial and operational execution, and resilient demand. Organic sales in the quarter rose 7%.
Orders of $2.2 billion increased 43% year over year in the reported quarter. Organically, orders were up 3%.
Segmental Details
Revenues in the Water Infrastructure segment totaled $574 million, up 40% year over year. Organic sales increased 6% year over year, buoyed by price realization and growth across all regions and applications.
The Applied Water segment generated revenues of $436 million in the quarter, down 4% year over year. The Zacks Consensus Estimate was pegged at $439 million. Organic sales fell 4% on a year-over-year basis. The segmental performance was hurt by unfavorable mix, inflation and lower volume partially offset by productivity.
Quarterly revenues at the Measurement & Control Solutions segment totaled $462 million, up 22.2% year over year. The Zacks Consensus Estimate was pegged at $475 million. Organic sales were up 22% year over year driven by smart metering demand and execution.
Quarterly revenues at the Water Solutions and Services segment totaled $561 million, up 171% year over year. Organic sales were up 6% year over year driven by large long-term outsourced water contract.
In the reported quarter, Xylem’s adjusted EBITDA was $391 million, up 65.7% from the year-ago quarter’s level. The margin improved to 19.2% compared with 16.3% in the prior year.
Adjusted operating income was $294 million, up 58.9% year over year. Adjusted operating margin increased to 14.5% from 12.8% in the year-earlier quarter.
Balance Sheet and Cash Flow
Exiting the first quarter of 2024, Xylem had cash and cash equivalents of $947 million compared with $1.02 billion at the end of December 2023. Long-term debt was $1.99 billion at the end of the first quarter 2024 compared with $2.3 billion at the end of December 2023.
In the first three months of 2024, XYL generated net cash of $89 million from operating activities against $19 million used in year-ago period. Capital expenditure was $74 million, up 51% from the year-earlier quarter. Free cash flow was $15 million in the first three months of 2024 against free cash outflow of $35 million in the prior year.
Rewards to Shareholders
In the first three months of 2024, Xylem paid dividends of $88 million, up 46.7% year over year. The company also bought back shares worth $15 million in the same period compared with $8 million worth of shares repurchased in a year ago.
2024 Guidance
Xylem now expects revenues of approximately $8.5 billion for 2024. This indicates an increase of 15-16% from the prior-year levels on a reported basis and around 4-6% on an organic basis. Previously, the company projected the same to increase 14-15% on a reported basis and 3-5% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 20.0% for 2024, indicating an expansion of 110 basis points from the year-earlier actuals. XYL currently forecasts adjusted earnings in the range of $4.10-$4.25 per share, higher than the band of $4.00-$4.20 projected earlier. This metric suggests an increase from $3.78 per share reported in 2023. Free cash flow conversion to net income is anticipated to be around 115%.
Zacks Rank & Industrial Companies
XYL currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:
The Zacks Consensus Estimate for GTLS’ 2024 earnings has increased 5.7% in the past 60 days.
Crane Company (CR - Free Report) currently flaunts a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 4.9%.
Ingersoll Rand plc (IR - Free Report) presently carries a Zacks Rank of 2 (Buy). IR delivered a trailing four-quarter average earnings surprise of 15.9%.
In the past 60 days, the Zacks Consensus Estimate for Ingersoll Rand’s 2024 earnings has increased 1.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Xylem (XYL) Q1 Earnings & Revenues Beat, '24 View Raised
Xylem Inc.’s (XYL - Free Report) first-quarter 2024 adjusted earnings of 90 cents per share surpassed the Zacks Consensus Estimate of 84 cents. Also, the bottom line increased 14% year over year.
XYL’s revenues of $2.03 billion outperformed the Zacks Consensus Estimate of $2.00 billion. The top line jumped 40% year over year, driven by strong commercial and operational execution, and resilient demand. Organic sales in the quarter rose 7%.
Orders of $2.2 billion increased 43% year over year in the reported quarter. Organically, orders were up 3%.
Segmental Details
Revenues in the Water Infrastructure segment totaled $574 million, up 40% year over year. Organic sales increased 6% year over year, buoyed by price realization and growth across all regions and applications.
The Applied Water segment generated revenues of $436 million in the quarter, down 4% year over year. The Zacks Consensus Estimate was pegged at $439 million. Organic sales fell 4% on a year-over-year basis. The segmental performance was hurt by unfavorable mix, inflation and lower volume partially offset by productivity.
Quarterly revenues at the Measurement & Control Solutions segment totaled $462 million, up 22.2% year over year. The Zacks Consensus Estimate was pegged at $475 million. Organic sales were up 22% year over year driven by smart metering demand and execution.
Quarterly revenues at the Water Solutions and Services segment totaled $561 million, up 171% year over year. Organic sales were up 6% year over year driven by large long-term outsourced water contract.
Xylem Inc. Price, Consensus and EPS Surprise
Xylem Inc. price-consensus-eps-surprise-chart | Xylem Inc. Quote
Margin Profile
In the reported quarter, Xylem’s adjusted EBITDA was $391 million, up 65.7% from the year-ago quarter’s level. The margin improved to 19.2% compared with 16.3% in the prior year.
Adjusted operating income was $294 million, up 58.9% year over year. Adjusted operating margin increased to 14.5% from 12.8% in the year-earlier quarter.
Balance Sheet and Cash Flow
Exiting the first quarter of 2024, Xylem had cash and cash equivalents of $947 million compared with $1.02 billion at the end of December 2023. Long-term debt was $1.99 billion at the end of the first quarter 2024 compared with $2.3 billion at the end of December 2023.
In the first three months of 2024, XYL generated net cash of $89 million from operating activities against $19 million used in year-ago period. Capital expenditure was $74 million, up 51% from the year-earlier quarter. Free cash flow was $15 million in the first three months of 2024 against free cash outflow of $35 million in the prior year.
Rewards to Shareholders
In the first three months of 2024, Xylem paid dividends of $88 million, up 46.7% year over year. The company also bought back shares worth $15 million in the same period compared with $8 million worth of shares repurchased in a year ago.
2024 Guidance
Xylem now expects revenues of approximately $8.5 billion for 2024. This indicates an increase of 15-16% from the prior-year levels on a reported basis and around 4-6% on an organic basis. Previously, the company projected the same to increase 14-15% on a reported basis and 3-5% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 20.0% for 2024, indicating an expansion of 110 basis points from the year-earlier actuals. XYL currently forecasts adjusted earnings in the range of $4.10-$4.25 per share, higher than the band of $4.00-$4.20 projected earlier. This metric suggests an increase from $3.78 per share reported in 2023. Free cash flow conversion to net income is anticipated to be around 115%.
Zacks Rank & Industrial Companies
XYL currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:
Chart Industries (GTLS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 75.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GTLS’ 2024 earnings has increased 5.7% in the past 60 days.
Crane Company (CR - Free Report) currently flaunts a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 4.9%.
Ingersoll Rand plc (IR - Free Report) presently carries a Zacks Rank of 2 (Buy). IR delivered a trailing four-quarter average earnings surprise of 15.9%.
In the past 60 days, the Zacks Consensus Estimate for Ingersoll Rand’s 2024 earnings has increased 1.6%.