Xylem sees solid second quarter of 2017
Global water technology company Xylem Inc. reported earnings for the second quarter of 2017 this week. The company saw a slight beat against analysts’ expectations on profit, and a slight miss on revenue, but delivered impressive results against the comparable quarter in 2016 nonetheless. The company reported net income of $99 million, or $0.55 per share (adjusted: $106 million, or $0.59 per share). This is a 23% increase from the second quarter of 2016. When it came to revenue, Xylem reported total revenues for the quarter of $1.2 billion, a rise of 25% year over year, including the impact of acquisitions.
Xylem’s share price has appreciated by 23% in 2017 so far
SOURCE: Yahoo Finance
The company said that it was seeing strong organic growth, with orders “exceeding $1.2 billion” in the second quarter – an 8% rise, year over year. It also reported that its operating margin increased 20 basis points to 11.9%. As a result of these positive metrics, the company said it was increasing its full year 2017 guidance on earnings per share to a range of $2.30 to $2.40.
The company’s CEO and president, Patrick Decker, said: ““Our businesses performed well in the second quarter and are capitalizing on strong order activity that we expect to generate improved growth. In the second quarter, we turned in an eight-percent increase in orders with double-digit growth in treatment orders, a strong harbinger for continued strength in the water utility sector. We are pleased with the growth momentum that continues in Sensus as well as the progress we’re making in further integrating the business. The team delivered a signature project win in the electric and gas space in the quarter, which represents one of Sensus’ largest communication system deployments to date in the U.S., and includes the installation of the network as well as electric and gas smart meters.”
“Looking ahead, we have solid plans and are operating in improving end markets, which reinforce our confidence in our ability to deliver solid growth and margin expansion in line with our improved guidance for the full year.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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