Xylem in Q1: “slightly better” than expected, say management
Global water technology company Xylem Inc. reported first quarter earnings on Tuesday – a mixed bag that nonetheless beat analysts expectations on earnings by 2%. The company reported a net income of $56 million, or $0.31 earnings per share, though post-adjustment those figures become $71 million and $0.39, respectively. This is a slight beat of the consensus estimate, and an 11% increase from the same quarter in the previous year. Total revenue for the quarter stood at $1.1 billion, 26% up, year-on-year. These figures are inclusive of Sensus, a recent acquisition by Xylem, which itself saw a 7% increase in revenue against the previous year’s quarter.
Patrick Decker, Xylem’s president and CEO, made the following comment on the results:
“Our performance in the first quarter was slightly better than our expectations overall. There were a number of encouraging signs of growing strength in our most important end markets and geographies. First, our Sensus business delivered strong top-line growth. Second, we continued to see positive leading indicators in the public utility sector with orders growth of three percent, driven by an eight-percent increase in treatment orders. This further bolsters our confidence in the longer-term health of this sector. And we were pleased to see momentum continuing to build in key emerging markets, where our orders were up 14 percent in the quarter. These results underpin our outlook for solid growth this year.”
Xylem also reiterated its full year guidance for 2017. It expects revenue in the range of $4.5 to $4.6 billion, which would be an increase of between 20% and 22%. Full year operating margin is expected to be in the range of 13.2% to 13.7%. The company also upgraded its earnings estimates, now expecting to deliver between $2.23 and $2.38 per share.
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.