Xylem reports strong quarter with double-digit earnings growth
Global water technology company Xylem is becoming more and more relevant every day. The company is a major player in the fight against a global water crisis and the most pernicious effects of climate change. During the last quarter, a major study was released that paints a dire picture of our current predicament – that means Xylem’s stated mission (“Lets Fix Water”) may turn out to be a necessity, as well as good business sense. All this said, it is perhaps unsurprising that the company outperformed when it posted quarterly earnings last week.
Investors have sent Xylem’s share price up by 6% over the last 5 days
Source: Yahoo Finance
Xylem said that revenue for the third quarter of 2018 came in at $1.3 billion – an 8% increase from the year-ago quarter, excluding the impact of foreign exchange and acquisitions. When it came to earnings, Xylem posted a major hike of 18%, year on year. The company said that it brought in adjusted net income of $139 million, which works out at earnings of $0.77 per share.
Xylem’s president and CEO, Patrick Decker, made the following comment in a press release: “Our team delivered another quarter of strong results, positioning us well to meet our long-term growth and financial commitments. The organic growth we delivered in revenue and orders reflects strong performance in each of our major geographies and across all end markets.”
“We see momentum strengthening in our ongoing efforts to drive commercial excellence and leverage our expanded portfolio, which are yielding more wins and share gains. Our focus on executing productivity initiatives and realizing additional pricing has enabled us to continue to mitigate ongoing inflationary pressures. I’m pleased with our teams’ marketplace execution, which has continued to gain momentum throughout the year and sets us up for continued strong growth ahead.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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