) is set to report first-quarter 2014 results on Apr 29, before
the opening bell. Last quarter, the company delivered 7.69%
positive earnings surprise. Let's see how things are shaping up
for this announcement.
Factors to Consider
In the fourth quarter of 2013, Xylem reported year-over-year
improved results, with adjusted earnings per share of 56 cents,
19% higher than the year-ago quarter.
Revenues for the reported quarter improved roughly 7% year
over year to $1.03 billion. The increase in revenues was the
result of improved demand in the industrial and public utility
Management is optimistic of a similar growth momentum in 2014
which started in the second half of 2013. Revenues in 2014 are
expected to increase 2% to 4% year over year to roughly $4.0
billion. Adjusted net income is estimated in the range of $345 to
$370 million, with earnings per share in the range of $1.85 to
Our proven model does not conclusively show that Xylem is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as we see below.
This is because the Most Accurate estimate stands at 32 cents
flat with the Zacks Consensus Estimate. Hence, the difference is
Xylem has a Zacks Rank #3 (Hold) which when combined with a 0.00%
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
a negative estimate revision momentum.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Manitex International, Inc.
), Earnings ESP of +5.56% and a Zacks Rank #3.
), Earnings ESP of +1.82% and a Zacks Rank #3.
Rockwell Automation Inc.
), Earnings ESP of +1.38% and a Zacks Rank #3.
INGERSOLL RAND (IR): Free Stock Analysis
MANITEX INT INC (MNTX): Free Stock Analysis
ROCKWELL AUTOMT (ROK): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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