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With a market cap of $28.2 billion, Xylem Inc. (XYL) is a global leader in providing innovative water solutions across the entire water process cycle, including collection, distribution, and return to the environment. Its brands, such as Flygt, Goulds Water Technology, and Sensus, cater to various applications, including water transportation, treatment, testing, and smart water management. The Washington, District of Columbia-based company is expected to release its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 4.
Ahead of this event, analysts project the water and wastewater treatment company to report a profit of $1.13 per share, reflecting an increase of 14.1% from $0.99 per share in the year-ago quarter. The company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, XYL met the consensus EPS estimate.
For fiscal 2024, analysts forecast XYL to report EPS of $4.23 per share, up 11.9% from $3.78 per share in fiscal 2023. In addition, EPS is expected to grow 11.15% year-over-year to $4.70 in fiscal 2025.
Over the past 52 weeks, Xylem has risen 1.6%, underperforming the broader S&P 500 Index's ($SPX) 21.8% gain and the Industrial Select Sector SPDR Fund's (XLI) 16.9% return over the same time frame.
Xylem's stock dropped over 6% on Oct. 31 after its Q3 earnings report showed mixed results. The company reported $2.1 billion in revenue, a 1% year-over-year increase, which fell short of the consensus estimate, though adjusted net income of $1.11 per share matched projections. Revenue growth was described as "moderated" due to project timing, raising concerns about the pace of progress. Additionally, Xylem's updated 2024 guidance of $8.5 billion in revenue and adjusted net income of $4.22 per share to $4.24 per share came in slightly below analyst expectations.
Analysts' consensus view on Xylem stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, 10 suggest a "Strong Buy," one gives a "Moderate Buy," and six recommend a "Hold." As of writing, XYL is trading below the average analyst price target of $151.64.
