Xylem Stock Trades Higher After Beating Q2 Earnings; Raises FY21 Revenue Outlook

Xylem Inc XYL reported second-quarter revenue growth of 16.5% year-over-year to $1.35 billion, and 11% on an organic basis, beating the consensus estimate of $1.35 billion.
Sales by segments: Water Infrastructure $569 million (+14% Y/Y), Applied Water $414 million (+23% Y/Y), and Measurement & Control Solutions $368 million (+14% Y/Y).
The company recorded a 29% organic orders growth on overall underlying demand across segments.
Adjusted EPS improved to $0.66 from $0.40 in 2Q20, beating consensus estimates of $0.62.
The gross margin expanded by 108 bps to 38.5%. The operating income increased to $160 million from $54 million a year ago, and the margin expanded by 720 bps to 11.8%.
Adjusted operating margin expanded by 300 bps to 12.3%.
Xylem generated cash from operating activities of $232 million, compared to $181 million a year ago.
Adjusted EBITDA was $234 million, compared to $177 million in 2Q20, and margin expanded by 206 bps to 17.3%.
FY21 Outlook: Xylem expects organic revenue growth of 6%-8%, and 9%-11% on a reported basis (prior guidance of 5%-7%, and 8%-10% on a reported basis)
It expects adjusted EPS of $2.55-$2.70 vs. a consensus estimate of $2.71.
Price action: XYL shares are trading higher by 1.76% at $127.85 on the last check Tuesday.