We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
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.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.2 billion, indicating growth of 3% from the prior-year quarter’s reported number. The consensus mark for earnings is pinned at $1.12 per share, which has edged down a penny in the past seven days. The figure indicates an increase of 13.1% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 3.3%.
Let us see how things have shaped up for Xylem this earnings season.
Factors Likely to Have Shaped Quarterly Performance
Xylem has been experiencing persistent weakness in the Applied Water segment due to a reduced number of project wins. Soft demand for industrial and building solutions applications, including pumps, valves, heat exchangers, controls and dispensing equipment, is likely to weigh on the segment’s results . The Zacks Consensus Estimate for the Applied Water segment’s quarterly revenues is pegged at $453 million, indicating a decline of approximately 1% from the year-ago number.
Growth in the transport application business, driven by a strong pipeline of capital projects in the United States and Western Europe, is anticipated to have supported the Water Infrastructure segment’s performance. However, weakness in the treatment applications business, across all major geographic markets, is likely to have affected its performance. The Zacks Consensus Estimate for the Water Infrastructure segment’s revenues is pegged at $709 million, indicating an 18.6% decline from the year-ago figure.
Nevertheless, strength in XYL’s dewatering applications business in the United States and the emerging markets, supported by strong rental demand and capital projects, is likely to augment the Water Solutions and Services segment’s results. The Zacks Consensus Estimate for the Water Solutions segment’s revenues is pegged at $559 million, indicating 73.6% growth from the year-ago figure.
Also, robust demand for the company’s advanced technology solutions like smart metering and other applications, primarily in the United States, is likely to have augmented the performance of the Measurement & Control Solutions (M&CS) segment. The Zacks Consensus Estimate for the M&CS segment’s revenues is pinned at $467 million, in line with the year-ago quarter’s figure.
The company’s bottom line is likely to have reflected the impact of raw material cost inflation and high labor, freight and overhead costs in the fourth quarter. High business integration expenses related to the Idrica buyout are also expected to have hurt the bottom line .
That said, the Evoqua acquisition in May 2023, which expanded Xylem’s position in water technologies, solutions and services and strengthened its foothold in lucrative end markets, is expected to bolster its top-line results.
Amid this, Xylem expects revenues of $8.5 billion in 2024, indicating an approximately 15% jump on a reported basis and 5% on an organic basis. However, the current outlook reflects a decline from its previous projection of 16% and 5-6% growth on a reported and organic basis, respectively.
What the Zacks Model Unveils
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 odds of an earnings beat. That is not the case here, as elaborated below.
Earnings ESP: Xylem has an Earnings ESP of -0.31%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
The company is scheduled to release fourth-quarter results on Feb. 18. Allegion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.9%.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter results on Feb. 18.
Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 10.8%.
Stanley Black & Decker (SWK - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank of 3 at present. The company is slated to release its fourth-quarter 2024 results on Feb. 5.
SWK’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Xylem Gears Up to Post Q4 Earnings: Here's What's in Store
Xylem Inc. (XYL - Free Report) is scheduled to release fourth-quarter 2024 results on Feb. 4, before market open.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.2 billion, indicating growth of 3% from the prior-year quarter’s reported number. The consensus mark for earnings is pinned at $1.12 per share, which has edged down a penny in the past seven days. The figure indicates an increase of 13.1% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 3.3%.
Let us see how things have shaped up for Xylem this earnings season.
Xylem Inc. Price and EPS Surprise
Xylem Inc. price-eps-surprise | Xylem Inc. Quote
Factors Likely to Have Shaped Quarterly Performance
Xylem has been experiencing persistent weakness in the Applied Water segment due to a reduced number of project wins. Soft demand for industrial and building solutions applications, including pumps, valves, heat exchangers, controls and dispensing equipment, is likely to weigh on the segment’s results . The Zacks Consensus Estimate for the Applied Water segment’s quarterly revenues is pegged at $453 million, indicating a decline of approximately 1% from the year-ago number.
Growth in the transport application business, driven by a strong pipeline of capital projects in the United States and Western Europe, is anticipated to have supported the Water Infrastructure segment’s performance. However, weakness in the treatment applications business, across all major geographic markets, is likely to have affected its performance. The Zacks Consensus Estimate for the Water Infrastructure segment’s revenues is pegged at $709 million, indicating an 18.6% decline from the year-ago figure.
Nevertheless, strength in XYL’s dewatering applications business in the United States and the emerging markets, supported by strong rental demand and capital projects, is likely to augment the Water Solutions and Services segment’s results. The Zacks Consensus Estimate for the Water Solutions segment’s revenues is pegged at $559 million, indicating 73.6% growth from the year-ago figure.
Also, robust demand for the company’s advanced technology solutions like smart metering and other applications, primarily in the United States, is likely to have augmented the performance of the Measurement & Control Solutions (M&CS) segment. The Zacks Consensus Estimate for the M&CS segment’s revenues is pinned at $467 million, in line with the year-ago quarter’s figure.
The company’s bottom line is likely to have reflected the impact of raw material cost inflation and high labor, freight and overhead costs in the fourth quarter. High business integration expenses related to the Idrica buyout are also expected to have hurt the bottom line .
That said, the Evoqua acquisition in May 2023, which expanded Xylem’s position in water technologies, solutions and services and strengthened its foothold in lucrative end markets, is expected to bolster its top-line results.
Amid this, Xylem expects revenues of $8.5 billion in 2024, indicating an approximately 15% jump on a reported basis and 5% on an organic basis. However, the current outlook reflects a decline from its previous projection of 16% and 5-6% growth on a reported and organic basis, respectively.
What the Zacks Model Unveils
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 odds of an earnings beat. That is not the case here, as elaborated below.
Earnings ESP: Xylem has an Earnings ESP of -0.31%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter results on Feb. 18. Allegion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.9%.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter results on Feb. 18.
Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 10.8%.
Stanley Black & Decker (SWK - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank of 3 at present. The company is slated to release its fourth-quarter 2024 results on Feb. 5.
SWK’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 18.6%.