Xylem (XYL) Reports Earnings Tomorrow: What To Expect

Water technology company Xylem (NYSE:XYL) will be reporting earnings tomorrow before the bell. Here’s what you need to know.

Xylem beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $2.26 billion, up 6.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Is Xylem a buy or sell going into earnings? Read our full analysis here, it’s free .

This quarter, analysts are expecting Xylem’s revenue to be flat year on year at $2.04 billion, slowing from the 40.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xylem has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington’s revenues decreased 3.9% year on year, beating analysts’ expectations by 6.7%, and GE Aerospace reported flat revenue, falling short of estimates by 7.9%. Worthington traded up 24% following the results while GE Aerospace was also up 8.6%.

Read our full analysis of Worthington’s results here and GE Aerospace’s results here .

Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Xylem is down 2.8% during the same time and is heading into earnings with an average analyst price target of $137.89 (compared to the current share price of $116.10).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link .