), one of the leading providers of innovative solutions for
global water challenges, recently announced the approval of a new
share buyback program that will enable the company to reward its
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The approval gives Xylem the authorization to repurchase up to
$250 million worth shares from the open market in a three year
time-period. Along with this, the company also declared to pay a
quarterly dividend of $0.1164 per share on Sep 18, 2013 to
shareholders of record on Sep 4, 2013.
This announcement will likely raise investors' confidence in the
stock. Xylem follows a consistent policy of rewarding its
shareholders with dividend payments garnished with occasional
increases and share buyback programs. These also points toward
the company's healthy balance sheet and strong cash position.
A look into Xylem's second quarter 2013 financial results
(announced on Jul 30, 2013) clearly shows the compliance with
this capital deployment policy. During the quarter, shares worth
$18 million were repurchased while approximately $43 million were
paid as dividend.
Talking of Xylem's cash position, cash and cash equivalents
exiting the quarter were $360 million while roughly $42 million
were generated from operating activities.
The Zacks Consensus Estimate for Xylem currently stands at 38
cents for the third quarter 2013, reflecting a decline of 13.6%
year over year. Earnings Estimate for 2013 and 2014 are at $1.43
and $1.75, down 19.2% and up 22.6%, respectively.
Xylem Inc. is based in White Plains, New York and operates in
more than 150 countries worldwide. The company currently has a
$4.5 billion market capitalization and carries a Zacks Rank #5
Other stocks to watch out for in the industry are
), each with a Zacks Rank #1 (Strong Buy) while
The Middleby Corp.
) carries a Zacks Rank #2 (Buy).