Xylem Inc. sees share price surge on the back of excellent second quarter
Global water technology company Xylem Inc. surprised investors with the positivity of its latest quarterly earnings report this week, sending the share price up sharply. The company, the motto of which is “lets solve water” is dedicated to fixing the planet’s most pressing water issues – and in the second quarter of 2018, it made great progress.
Xylem’s share price surged post-results – up 12% in 5 days!
SOURCE: Yahoo Finance
Xylem said that revenue rose by 13% year on year to $1.3 billion, and earnings per share increased by even more over the same timeframe: +24%, to $0.73. On an organic basis, revenue grew by 8%, driven by double-digit increases in utilities and “continued strength” in the industrial and commercial end markets “across nearly all major geographies.”
Xylem’s President and CEO, Patrick Decker, made the following statement on the back of the results: “Our second quarter results were very strong as our team continued to successfully execute on our strategy to generate consistent, profitable growth. Once again, we delivered high single-digit organic growth in revenue and orders globally, reflecting solid growth in each of the major geographic markets in which we operate. We are capturing share in the utilities end market where strong orders and backlog growth reflect continued momentum."
“As we indicated previously, we began implementing price increases earlier this year and I’m pleased with the traction we’ve gained in the marketplace. Our ability to successfully realize meaningful pricing impact, while continuing to execute our productivity initiatives, has and will continue to help us mitigate higher input costs from inflationary pressures and tariffs. Our strong operational performance in the first half of the year and continued momentum underpins our confidence in our updated expectations for the full year.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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