Yahoo Finance Xylem (XYL) to Report Q1 Earnings: What's in the Cards?
Xylem Inc. XYL is scheduled to release first-quarter 2023 earnings numbers on May 4, before market open.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 16.7%.
Let’s see how things have shaped up for Xylem this earnings season.
Xylem Inc. Price and EPS Surprise
Xylem Inc. price-eps-surprise | Xylem Inc. Quote
Factors to Note
Due to the essential nature of Xylem’s business, demand remains robust. This, coupled with price realization and improved supply chains, are likely to have aided the company’s first-quarter performance.
The Water Infrastructure segment is expected to have benefited from effective price realization, robust transport demand in Western Europe and robust dewatering demand in emerging markets. The Zacks Consensus Estimate for segmental revenues in the first quarter indicates a 3% increase from the year-ago reported number.
XYL’s Applied Water segment is expected to reflect higher revenues on the back of strong price realization and backlog execution in all end markets. The consensus mark for revenues at the Applied Water unit suggests a 1.4% rise from the year-ago reported figure.
Robust water quality test and pipeline assessment applications and improvement in chip supply are expected to have driven Xylem’s Measurement & Control Solutions unit’s performance. The Zacks Consensus Estimate for segmental revenues hints at a 16.2% jump from the year-ago reported number.
However, high raw material, labor, freight and overhead costs are likely to have dented XYL’s bottom line. Also, foreign currency headwinds might have affected the company’s top line.
Earnings Whispers
Our proven model predicts an earnings beat for Xylem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Xylem has an Earnings ESP of +2.89% as the Most Accurate Estimate is pegged at 64 cents, higher than the Zacks Consensus Estimate of 62. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xylem currently carries a Zacks Rank #2.
Highlights of Q4 Earnings
Xylem’s fourth-quarter 2022 adjusted earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year. Total revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Flowserve FLS has an Earnings ESP of +5.19% and a Zacks Rank #2. The company is scheduled to release first-quarter 2023 results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flowserve’s first-quarter earnings has remained steady in the past 60 days. The stock has rallied 15% in the past six months.
Illinois Tool Works ITW has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The stock has gained approximately 12% in the past six months.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Flowserve Corporation (FLS) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
