Xylem (XYL) Tops Q1 Earnings and Revenue Estimates

Core Viewpoint - Xylem reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of$ 0.95 per share, and showing an increase from $0.90 per share a year ago, indicating a positive earnings surprise of 8.42% [1][2] Financial Performance - The company achieved revenues of$ 2.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.26% and showing a year-over-year increase from $2.03 billion [2] - Over the last four quarters, Xylem has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - Xylem shares have experienced a slight decline of about 0.1% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is$ 1.14 on revenues of $2.21 billion, while the estimate for the current fiscal year is$ 4.64 on revenues of $8.75 billion [7] - The estimate revisions trend for Xylem is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Xylem's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]