Shares of Xylem Inc. Rise 10% After Q2 Results Top Estimates
What happened
Shares of Xylem Inc. (NYSE: XYL), a global provider of equipment, technology, and services to transport and treat water in public, residential, and commercial buildings, were up 10% as of 3:53 p.m. EDT Tuesday after the company announced strong second-quarter results.
So what
Starting from the top, second-quarter revenue checked in at $1.32 billion, a 13.1% increase over the prior year and higher than analysts' estimates calling for $1.27 billion. Second-quarter adjusted earnings jumped 23.7% compared to the prior year, to $0.73 per share, which was also ahead of estimates calling for $0.71 per share.
CEO Patrick Decker said in a press release: "Our second quarter results were very strong as our team continued to successfully execute on our strategy to generate consistent, profitable growth. Once again, we delivered high single-digit organic growth in revenue and orders globally, reflecting solid growth in each of the major geographic markets in which we operate."
Now what
Management noted that the price increases that began earlier in 2018 have gained traction and would continue to be implemented in the marketplace, helping offset higher tariffs and material-cost increases. Management's forecast for full-year revenue is roughly $5.2 billion -- a 10% increase over the prior year -- and organic growth between 6% and 7%.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.