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Xylem (XYL) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Analysts on Wall Street project that Xylem (XYL - Free Report) will announce quarterly earnings of $1.11 per share in its forthcoming report, representing an increase of 12.1% year over year. Revenues are projected to reach $2.18 billion, increasing 4.8% from the same quarter last year.

The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Xylem metrics that are commonly tracked and projected by analysts on Wall Street.

The combined assessment of analysts suggests that 'Revenue- Applied Water' will likely reach $449.78 million. The estimate indicates a year-over-year change of -3.3%.

The consensus estimate for 'Revenue- Water Infrastructure' stands at $637.98 million. The estimate points to a change of -20.6% from the year-ago quarter.

It is projected by analysts that the 'Revenue- Measurement & Control Solutions' will reach $479.03 million. The estimate indicates a year-over-year change of +8.9%.

Analysts forecast 'Adjusted Operating Income- Water Infrastructure' to reach $115.15 million. Compared to the current estimate, the company reported $152 million in the same quarter of the previous year.

The average prediction of analysts places 'Adjusted Operating Income- Measurement & Control Solutions' at $87.15 million. The estimate is in contrast to the year-ago figure of $50 million.

The consensus among analysts is that 'Adjusted Operating Income- Applied Water' will reach $74.61 million. The estimate is in contrast to the year-ago figure of $79 million.

View all Key Company Metrics for Xylem here>>>

Over the past month, Xylem shares have recorded returns of -3% versus the Zacks S&P 500 composite's +2% change. Based on its Zacks Rank #3 (Hold), XYL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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