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Xylem Gears Up to Report Q1 Earnings: Here's What to Expect

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Xylem Inc. (XYL - Free Report) is scheduled to release first-quarter 2025 results on April 29, before market open. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.04 billion, indicating growth of 0.5% from the prior-year quarter’s number. The consensus mark for earnings is pinned at 95 cents per share, which has been stable in the past 30 days. The figure indicates an increase of 5.6% from the year-ago quarter’s figure.

The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and matched the mark in one, the average surprise being 3.8%.

Let’s see how things have shaped up for Xylem this earnings season.

Factors Likely to Have Shaped the Quarterly Performance

Robust demand for advanced technology solutions like smart metering and other applications 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 $466 million, reflecting an increase of 0.9% from the year-ago quarter’s figure.

Growth in the transport application business, driven by a strong pipeline of capital projects in the United States, is anticipated to have supported the Water Infrastructure segment’s performance. Strong momentum in the treatment applications business, supported by increasing capital projects in emerging markets, is also likely to have augmented its performance. The Zacks Consensus Estimate for the Water Infrastructure segment’s revenues is pegged at $575 million, in line with the year-ago figure.

Strength in XYL’s dewatering applications business in 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 and Services segment’s revenues is $565 million.

However, lower demand for industrial and building solutions applications, including pumps, valves, heat exchangers, controls and dispensing equipment, is expected to have hurt the Applied Water segment’s performance. The Zacks Consensus Estimate for the Applied Water segment’s revenues is pegged at $429 million, indicating a 1.6% decline from the year-ago figure.

That said, the company’s acquisition of a majority stake in Idrica (in December 2024) boosted its growth opportunities and enabled it to penetrate new markets and deliver intelligent solutions to its customers. Also, the Evoqua acquisition (in May 2023) expanded Xylem’s position in water technologies, solutions and services and strengthened its foothold in lucrative end markets. These buyouts are expected to bolster its top-line results in the quarter.

XYL’s bottom line is likely to have reflected the impact of raw material cost inflation and high labor, freight and overhead costs in the first quarter. High business integration expenses related to the Idrica and Evoqua buyouts are also expected to have hurt the bottom line.

Xylem Inc. Price and EPS Surprise

Xylem Inc. Price and EPS Surprise

Xylem Inc. price-eps-surprise | Xylem Inc. Quote

Earnings Whisper

Our proven model predicts 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, which is the case here, as elaborated below.

Earnings ESP: Xylem has an Earnings ESP of +0.25%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: XYL presently carries a Zacks Rank of 3.

Other Stocks With the Favorable Combination

Here are three other companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.96% 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 first-quarter 2025 results on May 7. EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.3%.

Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 3 at present. The company is slated to release first-quarter results on April 30.

ITW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of 3 at present. The company is slated to release its third-quarter fiscal 2025 results on May 1.

PH delivered an average earnings surprise of 5.4% in the last four quarters, while beating estimates in each of the quarters.


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