No one likes it when their investment posts a double miss on yearly guidance.On the back of Xylem's (XYL -6.48%) latest quarterly earnings report, investors eagerly traded out of the stock on the second-to-last trading day of the week. This news-fueled decline left the shares with a more than 6% price haircut at market close, notably worse than the almost 2% decrease of the S&P 500 (^GSPC -1.86%) index.Modest rises in key fundamentalsXylem's third quarter saw the water technology specialist earn $2.1 billio ...

Financial Performance - Net income for the three months ended September 30, 2024, was $217 million, compared to $152 million for the same period in 2023, representing a 42.8% increase[7]. - For the nine months ended September 30, 2024, net income was $564 million, up from $343 million in 2023, reflecting a 64.3% growth[11]. - The company reported comprehensive income of $330 million for the three months ended September 30, 2024, compared to $78 million in the same period of 2023, a significant increase of 323.1%[7]. - Basic earnings per share for Q3 2024 were $0.89, up from $0.63 in Q3 2023, representing a 41.3% increase[49]. - The company reported a total revenue of $2,104 million for Q3 2024, a slight increase from $2,076 million in Q3 2023, indicating a growth of 1.4%[101]. - Total revenue for the three months ended September 30, 2024, was $1,973 million, a slight increase from $1,950 million in the same period of 2023, representing a growth of 1.2%[35]. Assets and Liabilities - Total current assets increased to $4,013 million as of September 30, 2024, from $3,884 million at the end of 2023, marking a 3.3% rise[9]. - Cash and cash equivalents at the end of the period were $989 million, compared to $705 million at the end of September 2023, indicating a 40.4% increase[11]. - The company’s long-term debt decreased to $1,977 million as of September 30, 2024, from $2,268 million at the end of 2023, a reduction of 12.8%[9]. - Total liabilities decreased to $5,446 million as of September 30, 2024, down from $5,936 million at the end of 2023, reflecting an 8.2% decline[9]. - Total inventories as of September 30, 2024, were $1,091 million, an increase from $1,018 million as of December 31, 2023[51]. Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $688 million for the nine months ended September 30, 2024, compared to $382 million in 2023, an increase of 80.1%[11]. - The income tax provision for Q3 2024 was $52 million, resulting in an effective tax rate of 19.3%, compared to 17.8% in Q3 2023[46]. - The effective tax rate for the nine months ended September 30, 2024, was 20.7%, compared to 19.3% for the same period in 2023[46]. Acquisitions and Divestitures - Xylem completed the acquisition of Evoqua Water Technologies Corp. on May 24, 2023, enhancing its portfolio in water and wastewater applications[14]. - The company completed the acquisition of Evoqua Water Technologies Corp. on May 24, 2023, for a total consideration of $6,900 million, which included $6,121 million in common stock and $619 million to repay Evoqua's indebtedness[19]. - The acquisition resulted in the recognition of $4,801 million in goodwill, primarily due to expected synergies and economies of scale from combining operations[21]. - The company sold the former Evoqua hemodialysis concentrates business for approximately $12 million during the third quarter ended September 30, 2023[30]. - The company also divested the former Evoqua carbon reactivation and slurry operations to Desotec US LLC for approximately $91 million, equal to the fair value less costs to sell[30]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $221 million, compared to $177 million in 2023, representing a 24.9% increase[11]. - Total capital expenditures for the total company were $74 million in Q3 2024, unchanged from Q3 2023[101]. Restructuring and Impairment - Restructuring costs for the three months ended September 30, 2024, totaled $4 million, a decrease from $20 million in the same period of 2023[41]. - Total restructuring and asset impairment charges for the nine months ended September 30, 2024, were $37 million, compared to $57 million in 2023[41]. - Impairment charges recognized in Q2 2024 amounted to $16 million, primarily related to customer relationships and trademarks[43]. Shareholder Equity and Dividends - Total stockholders' equity increased from $10,176 million on January 1, 2024, to $10,600 million by September 30, 2024, reflecting a growth of 4.2%[78]. - Dividends declared for the nine months ended September 30, 2024, totaled $263 million, with a per-share dividend of $0.36, consistent with the previous year[78]. - The company has $182 million remaining under its share repurchase program as of September 30, 2024[89]. Segment Performance - Water Infrastructure revenue for the three months ended September 30, 2024, was $349 million, compared to $333 million in 2023, reflecting a growth of 4.8%[33]. - Measurement and Control Solutions segment revenue rose to $458 million in Q3 2024, up from $413 million in Q3 2023, marking an increase of 10.9%[101]. - Water Solutions and Services segment revenue was $576 million in Q3 2024, down from $586 million in Q3 2023, a decrease of 1.7%[101]. Accounting and Reporting Changes - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures in its 2024 Annual Report[17]. - The company has recast prior period segment amounts to align with the new segment reporting structure effective January 1, 2024[19].

Xylem Inc. (NYSE:XYL) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET Company Participants Keith Buettner - Vice President, Investor Relations & Financial Planning & Analysis Matthew Pine - Chief Executive Officer Bill Grogan - Chief Financial Officer Conference Call Participants Deane Dray - RBC Capital Markets Mike Halloran - Baird Scott Davis - Melius Research Nathan Jones - Stifel Brett Linzey - Mizuho Operator Welcome to Xylem's Third Quarter 2024 Results Conference Call. All participants ...

Core Insights - Xylem Inc. reported third-quarter 2024 adjusted earnings of $1.11 per share, meeting the Zacks Consensus Estimate, with a year-over-year increase of 12% [1] - Revenues for the quarter were $2.10 billion, missing the consensus estimate of $2.18 billion, but reflecting a 1% year-over-year growth driven by solid orders across all segments [1][2] Revenue Breakdown - Water Infrastructure segment revenues were $623 million, up 2% year over year, with organic sales increasing by 1% [3] - Applied Water segment revenues totaled $447 million, down 4% year over year, with organic sales also falling by 4% due to geographic softness [4] - Measurement & Control Solutions segment revenues reached $458 million, up 11% year over year, driven by demand for smart metering [4] - Water Solutions and Services segment revenues were $576 million, down 2% year over year, with organic sales decreasing by 1% due to capital project timing [5] Margin and Profitability - Adjusted EBITDA was $447 million, an 8.7% increase from the previous year, with a margin improvement to 21.2% from 19.8% [6] - Adjusted operating income rose to $350 million, up 11.1% year over year, with an adjusted operating margin increasing to 16.6% from 15.2% [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the third quarter were $989 million, down from $1.02 billion at the end of December 2023; long-term debt decreased to $1.98 billion from $2.3 billion [7] - Net cash generated from operating activities in the first nine months of 2024 was $688 million, compared to $382 million in the same period last year [7] Capital Expenditure and Shareholder Returns - Capital expenditure was $221 million, a 24.9% increase from the previous year [8] - Dividends paid in the first nine months of 2024 totaled $263 million, up 20.1% year over year, with share buybacks amounting to $19 million compared to $10 million in the prior year [9] 2024 Guidance - Xylem expects revenues of approximately $8.5 billion for 2024, indicating a 15% increase from the prior year on a reported basis and around 5% on an organic basis [11] - Adjusted EBITDA margin is projected to be approximately 20.5%, reflecting an expansion of 160 basis points from the previous year [11] - Adjusted earnings are forecasted to be in the range of $4.22-$4.24 per share, up from $3.78 per share in 2023 [12]

xylem 2024 Third Quarter Results and Earnings October 31, 2024 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "forecast," "likely," "believe," "target," "will," "could," "would," "should," "potential," "may" and similar ...

Core Insights - Xylem reported $2.1 billion in revenue for Q3 2024, a year-over-year increase of 1.4%, with EPS of $1.11 compared to $0.99 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $2.18 billion, resulting in a surprise of -3.31% [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $1.11 [1] Revenue Performance - Water Solutions and Services revenue was $576 million, below the estimated $607.43 million [3] - Applied Water revenue was $447 million, slightly below the estimated $449.78 million, representing a -3.9% change year-over-year [3] - Water Infrastructure revenue was $623 million, significantly below the estimated $637.98 million, reflecting a -22.4% year-over-year change [3] - Measurement & Control Solutions revenue was $458 million, below the estimated $479.03 million, with a year-over-year change of +4.1% [3] Adjusted Operating Income - Adjusted Operating Income for Water Infrastructure was $111 million, compared to the average estimate of $115.15 million [3] - Adjusted Operating Income for Applied Water was $73 million, slightly below the estimated $74.61 million [3] - Adjusted Operating Income for Water Solutions and Services was $94 million, compared to the average estimate of $97.41 million [3] - Adjusted Operating Income for Corporate and other was -$10 million, better than the average estimate of -$16.10 million [3] - Adjusted Operating Income for Measurement & Control Solutions was $82 million, below the estimated $87.15 million [3] Stock Performance - Xylem shares returned -3.1% over the past month, while the Zacks S&P 500 composite increased by +1% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Core Viewpoint - Xylem reported quarterly earnings of $1.11 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.99 per share a year ago [1] - The company posted revenues of $2.1 billion for the quarter, missing the Zacks Consensus Estimate by 3.31%, but showing a slight increase from $2.08 billion year-over-year [2] Financial Performance - Earnings per share (EPS) for the recent quarter were $1.11, consistent with expectations, and up from $0.99 a year prior [1] - Revenue for the quarter was $2.1 billion, which was below the expected $2.17 billion, but an increase from the previous year's $2.08 billion [2] - Over the last four quarters, Xylem has surpassed consensus EPS estimates three times and has topped revenue estimates three times as well [2] Market Performance - Xylem shares have increased approximately 13.9% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $2.21 billion, and for the current fiscal year, it is $4.26 on revenues of $8.59 billion [7] - The outlook for the industry, specifically the Manufacturing - General Industrial sector, is favorable, ranking in the top 39% of over 250 Zacks industries [8]

| --- | --- | --- | |----------------------------------------|---------------------------------------------------|----------------------------------------------------| | | | Exhibit 99.1 | | | | | | Xylem Inc. | | | | 301 Water Street | SE, Suite 200 | | | | | | | Washington, DC Tel +1.202.869.9150 | 20003 | | | | | | | | | | | Contacts: | Media Houston Spencer +1 (914) 240-3046 | Investors Keith Buettner +1 (724) 772-1531 | | | Houston.Spencer@xylem.com | Keith.Buettner@xylem.com | Xylem Reports Third Quar ...

Core Viewpoint - Xylem (XYL) is positioned well to continue its trend of beating earnings estimates, having surpassed expectations in its last two quarterly reports [1][2]. Earnings Performance - Xylem has recorded an average earnings surprise of 4.99% over the last two quarters, with the most recent quarter showing a surprise of 2.83% (actual earnings of $1.09 per share vs. expected $1.06) and the previous quarter a surprise of 7.14% (actual $0.90 vs. expected $0.84) [1][2]. Earnings Estimates - Estimates for Xylem have been trending higher, supported by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +0.10%, indicating bullish sentiment among analysts regarding its near-term earnings potential [2][3]. Zacks Rank and Predictive Power - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with research indicating that such combinations result in positive surprises nearly 70% of the time [2][3]. Upcoming Earnings Report - Xylem's next earnings report is anticipated to be released on October 31, 2024, and the positive Earnings ESP indicates potential for continued strong performance [3].

Xylem Inc. (XYL) is well-poised for growth in the coming quarters, courtesy of its businesses and accretive acquisitions. The company's efforts to reward its shareholders add to its appeal. Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. It is involved in the full water-process cycle, including the collection, distribution and return of water to the environment. XYL has a significant presence in the United States, the Asia Pacific, Europe and various other ...