/Xylem%20Inc%20%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)
Washington, DC-based Xylem Inc. (XYL), with a market cap of $33.3 billion, is a global leader in water solutions, encompassing the entire water cycle from collection to distribution and environmental return. The company operates through three main segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The company is expected to announce its fiscal Q2 earnings results before the market opens on Tuesday, July 30.
Ahead of the event, analysts expect XYL to report a profit of $1.06 per share, up 8.2% from $0.98 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in all of the past four quarters.
Xylem reported an EPS of $0.90 in the latest quarter, reflecting a 13.9% year-over-year increase driven by sustained market demand and solid execution. This exceeded the consensus estimate by 7.1%.
For fiscal 2024, Wall Street expects Xylem to report EPS of $4.22, up 11.6% from $3.78 in fiscal 2023. For fiscal year 2025, the company’s EPS is projected to rise 12.8% annually to $4.76.
XYL stock has surged 20.1% on a YTD basis, outperforming the S&P 500 Index's ($SPX) 18.1% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 9.7% returns over the same time frame.
Xylem surpassed the broader market in 2024 due to strong operational performance and robust demand across its segments and regions. The company is successfully leveraging synergies from its integration with Evoqua and actively streamlining its operations to ensure sustained and enhanced margin growth moving forward.
On May 3, the company’s stock jumped 3.8% following its Q1 earnings release on May 2. The company beat both the top and bottom-line estimates and also raised its fiscal 2024 guidance range. It now expects earnings between $4.10 and $4.25 per share, while revenue is projected to be approximately $8.5 billion.
Analysts' consensus rating on Xylem stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among 18 analysts covering the stock, 11 recommend a "Strong Buy," one suggests a " Moderate Buy," and the remaining six advise a “Hold” rating.
The average analyst price target for XYL is $150.07, suggesting a potential upside of 9.3% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
