Exploring Xylem's Earnings Expectations

Xylem XYL is set to give its latest quarterly earnings report on Tuesday, 2025-04-29. Here's what investors need to know before the announcement.

Analysts estimate that Xylem will report an earnings per share (EPS) of $0.95.

Anticipation surrounds Xylem's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.05, which was followed by a 0.44% increase in the share price the next day.

Here's a look at Xylem's past performance and the resulting price change:

Market Performance of Xylem's Stock

Shares of Xylem were trading at $116.1 as of April 25. Over the last 52-week period, shares are down 10.49%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on Xylem

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Xylem.

Analysts have provided Xylem with 3 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $140.67, suggesting a potential 21.16% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Ingersoll Rand, Fortive and Dover, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Ingersoll Rand, with an average 1-year price target of $93.0, suggesting a potential 19.9% downside.
• Analysts currently favor an Neutral trajectory for Fortive, with an average 1-year price target of $79.67, suggesting a potential 31.38% downside.
• Analysts currently favor an Neutral trajectory for Dover, with an average 1-year price target of $205.54, suggesting a potential 77.04% upside.

Summary of Peers Analysis

The peer analysis summary presents essential metrics for Ingersoll Rand, Fortive and Dover, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Xylem ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it ranks second in return on equity.

All You Need to Know About Xylem

Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $8.6 billion in revenue in 2024.

Breaking Down Xylem's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Xylem showcased positive performance, achieving a revenue growth rate of 6.52% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.45%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Xylem's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.07%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Xylem's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.0%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Xylem's debt-to-equity ratio is below the industry average. With a ratio of 0.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Xylem visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.