The company reported earnings per share of 56 cents, up from 47 cents one year earlier. Revenue also increased 6.6% to $1.03 billion. Analysts had expected EPS of 52 cents a share on revenue of $990 million. Profit actually decreased to $68 million, or 37 cents a share, from $73 million, or 39 cents a share, in the same period one year ago.
Adjusted operating margin widened to 12.5% from 10.7%. Xylem also raised its quarterly dividend by 10% to 13 cents a share.
The company forecast earnings of $1.85 to $2 a share on revenue of $2 billion for the upcoming fiscal year, while analysts polled by Thomson Reuters expected EPS of $1.91 on sales of $3.94 billion.
TheStreet Ratings team rates XYLEM INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate XYLEM INC (XYL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: XYL Ratings Report