Free Research Report as Xylem’s Revenues Scaled 13.6% and Earnings Surged 38.7%

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LONDON, UK / ACCESSWIRE / May 29, 2018 / If you want access to our free earnings report on Xylem Inc. (NYSE: XYL), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=XYL. The Company reported its financial results on May 01, 2018, for the first quarter of the fiscal year 2018. The American water technology Company surpassed analysts' expectations for revenues, while its earnings were in-line with estimates for Q1 FY18. In addition, the Company raised its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Xylem most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the quarter ended March 31, 2018, Xylem's revenues increased 13.6% to $1.22 billion compared to $1.17 billion as on March 31, 2017, primarily driven by a growth in organic revenues and the impact of acquisitions. The Company's revenues for the reported quarter surpassed analysts' estimates of $1.18 billion.

Xylem incurred cost of revenues of $757 million in the reported quarter versus $659 million in the year ago comparable period. The Company's gross profit grew by 11.6% to $460 million in Q1 FY18 compared to $412 million in Q1 FY17.

For the reported quarter, Xylem posted adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $213 million compared to $173 million in the prior year's corresponding period, increasing 130 basis points y-o-y. The Company's adjusted EBITDA margin improved to 17.5% of revenues in Q1 FY18 from 16.2% in Q1 FY17.

Xylem's net income soared 41% to $79 million in Q1 FY18 compared to $56 million in Q1 FY17. During Q1 FY18, the Company's diluted earnings per share (EPS) increased 38.7% to $0.43 compared to $0.31 in the year ago same quarter. The Company reported an adjusted income and adjusted EPS of $93 million and $0.51, respectively, in Q1 FY18 compared to $71 million and $0.39, respectively, in Q1 FY17. The Company's adjusted EPS was in-line with analysts' estimates for the reported quarter.

Segments Details

Xylem operates through three reportable segments, namely (i) Water Infrastructure; (ii) Applied Water; and (iii) Measurement & Control Solutions.

Xylem's Water Infrastructure segment aggregated total revenues of $480 million in the reported quarter compared to $419 million in the year ago same period, increasing 14.6% y-o-y, and driven by strong results in the utilities end market, particularly in the United States. The segment's operating profit increased to $49 million in Q1 FY18 from $41 million in Q1 FY17.

For the reported quarter, Xylem's Applied Water segment's revenues were $366 million versus $333 million in the year ago comparable period, primarily driven by a strength in the industrial and commercial end markets, particularly in the United States, China, and Western Europe. The segment's operating profit advanced to $50 million in Q1 FY18 compared to $36 million in Q1 FY17.

During Q1 FY18, Xylem's Measurement & Control Solutions segment earned total revenues of $371 million compared to $319 million in Q1 FY17, mainly due to foreign currency translation. The segment generated an operating income of $33 million in Q1 FY18 compared to $25 million in Q1 FY17.

Cash Matters

As of March 31, 2018, Xylem's cash and cash equivalents balance stood at $297 million compared $287 million as of March 31, 2017. The Company had a long-term debt of $2.23 billion as of March 31, 2018, versus $2.20 billion as of March 31, 2017. For the reported quarter, the Company generated a cash inflow from operating activities of $63 million compared to $52 million in year ago same period.

Outlook

For FY18, Xylem expects revenues to be in the range of $5.1 billion to $5.2 billion, representing a y-o-y growth of 8% to 10%. The Company anticipates adjusted operating margin to be in the band of 13.9% to 14.3% and adjusted EPS to be in the range $2.82 to $2.97 for FY18.

Stock Performance Snapshot

May 25, 2018 - At Friday's closing bell, Xylem's stock slightly dropped 0.85%, ending the trading session at $71.40.

Volume traded for the day: 732.85 thousand shares.

Stock performance in the previous six-month period – up 6.01%; past twelve-month period – up 36.97%; and year-to-date – up 4.69%

After last Friday's close, Xylem's market cap was at $12.96 billion.

Price to Earnings (P/E) ratio was at 32.32.

The stock has a dividend yield of 1.18%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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