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Xylem Inc. (XYL), valued at $26.7 billion in market cap, stands as a global frontrunner in delivering cutting-edge water solutions that span the full water cycle, from collection and distribution to environmental return. Headquartered in Washington, D.C., the company operates through well-known brands like Flygt, Goulds Water Technology, and Sensus, serving diverse needs such as water transport, treatment, testing, and smart water management.
XYL is scheduled to announce its fiscal Q1 earnings before the market opens on Tuesday, April 29. Ahead of this event, analysts project the water and wastewater treatment company to report a profit of $0.95 per share, up 5.6% from $0.90 per share in the year-ago quarter.
The company holds a solid track record of consistently surpassing or meeting Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, XYL exceeded the consensus EPS estimate by 5.4%, driven by strong operational execution and robust demand across its water infrastructure and applied water segments.
For fiscal 2025, analysts forecast XYL to report EPS of $4.66 per share, up 9.1% from $4.27 per share in fiscal 2024. In addition, EPS is expected to grow 12.2% year-over-year to $5.23 in fiscal 2026.
Over the past 52 weeks, Xylem has plunged 14.3%, underperforming the broader S&P 500 Index's ($SPX) 6.6% gain and the Industrial Select Sector SPDR Fund's (XLI) 3.6% return over the same time frame.
Xylem's stock has lagged the broader market over the past year due to a mix of internal challenges and external pressures, including revenue shortfalls, high valuation, macroeconomic headwinds, insider selling, and leadership changes.
However, on Feb. 4, XYL shares jumped 5.2% following the release of its Q4 earnings report that beat expectations on multiple fronts. Revenue impressed, climbing 6.5% to $2.3 billion, beating consensus estimates by 3.7%. Adjusted operating income surged 20.4% to $377 million, underscoring improved profitability. The company also provided an optimistic outlook for fiscal 2025, citing robust end-market fundamentals and ongoing operational improvements.
Analysts' consensus view on Xylem stock is cautiously upbeat, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine suggest a "Strong Buy," one gives a "Moderate Buy," and seven recommend a "Hold."
Its mean price target of $146.43 represents a premium of 34.2% from the prevailing market prices,
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
