Xylem sees “double digit” growth in fourth quarter 2017
Global water technology company Xylem Inc. reported strong earnings for the fourth quarter of 2017, including adjusted earnings per share of 76¢ - in-line with estimates. When it comes to revenue, however, the company outperformed analysts’ expectations, delivering $1.277 billion rather than the predicted $1.275 billion. Revenues across the business’s segments were all in significantly positive territory: water infrastructure revenues rose by 10%, measurement & control solutions were up an impressive 50%, and applied water was up by 6.3%. All of these figures are reported against the year-ago quarter. For the whole year, the company saw a 24.8% increase in revenue, year on year.
Xylem’s share price is up by 11% already this year
SOURCE: Yahoo Finance
Patrick Decker, Xylem’s president and CEO, made a comment on the earnings via press release, saying:
“Our teams delivered a strong performance throughout 2017 and I’m very pleased with our full-year results. Our relentless focus on the customer and continuing to enhance our execution in the field translated into improved results in revenue, orders and backlog growth, with the momentum we built in the second half of the year carrying into 2018. We capitalized on improving end market conditions, particularly in public utilities where we continue to gain share.”
Our productivity for growth initiatives continue to generate significant savings and fund critical R&D investments for our long-term growth. The successful “integration of the new capabilities and capacity we gained with the addition of Sensus and Visenti are opening up new growth opportunities for us. And we’re building upon this as we continue to execute our strategy of disciplined capital deployment.”
As a result of the company’s strong performance the share price rose sharply. Xylem also issued a new outlook for 2018. It now expects to generate revenues in the range of $5.1 to $5.2 billion, and earnings per share are expected to come in between $2.82 and $2.97.
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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