Xylem sees a solid end to 2018, meets expectations
Global water-technology company Xylem reported solid fourth quarter earnings for 2018 that met expectations and demonstrated strong fundamentals. Xylem is at the forefront of the fight against global warming, water scarcity, pollution, and more (its moto is literally “lets solve water”), and the last three months of 2018 saw it generate a very respectable quantity of potentially life-saving business around the world. That’s good news for investors, good news for the company, and – undeniably – good news for the planet.
Xylem’s share price increased by more-than 7% last month
Source: Yahoo Finance
Xylem said that organic revenue was up by 9% on a year on year basis to $1.4 billion. Fourth quarter orders matched that, also coming in at $1.4 billion – although in this case, that represents a 10% increase on the previous year. Adjusted net income for the quarter shot up by 16% against the fourth quarter of 2017, hitting $159 million (which works out as earnings per share of $0.88).
Patrick Decker, Xylem’s president and CEO, made the following comment over the results: “We continued to build strong momentum throughout 2018, generating solid revenue and orders growth across each of our business lines. With our expanded digital offerings and leveraging our extensive installed base, we delivered significant value to our customers, and demand for our solutions grew across all of our end markets. We are well-positioned as we begin the year and focused on delivering each of our 2019 commitments and long-term financial objectives.”
For full-year 2019, Xylem predicted revenue growth of between 4% and 6%, and adjusted earnings per share in a range of $3.20 to $3.40.
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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