Xylem Q4 Profit Drops, But Beats Estimates

(RTTNews) - Xylem Inc. (XYL), a water technology company engaged in solving water related issues, on Thursday reported fourth quarter results that revealed a drop in net income, attributed to inflation and strategic investments that exceeded the benefits of price realization and productivity savings. The company results however beat Street's expectations on earnings and revenue.

Net income for the current fourth quarter was $113 million or $0.62 per share as compared to $148 million or $0.82 per share in the previous period.

Adjusted net income for the recent quarter was $115 million or $0.63 per share as compared to $145 million or $0.81 per share in the previous period. 16 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.61 per share. Analysts typically exclude one-time items.

Total Revenue for the period was logged at $1.32 billion as compared to $1.37 billion in the fourth quarter of 2020. 14 analysts polled by Thomson Reuters were expecting the company to report revenues of $1.31 billion.

Operating income declined to $140 million, from the level of $179 millions in the corresponding quarter of the previous fiscal.

The company forecasts full-year 2022 revenue in the range of $5.25 to $5.35 billion, up 1 to 3 percent on a reported basis and up 3 to 5 percent on an organic basis.

Full-year 2022 adjusted EBITDA margin is expected to be in the range of 16 to 17 percent. This results in adjusted earnings per share of $2.35 to $2.70, which represents a decline of 6 percent to an increase of 8 percent from Xylem's 2021 adjusted results.

The Board of Directors has declared a dividend of $0.30 per share, an increase of 7 percent. The dividend is payable on March 17, to shareholders of record on February 17.

Shares of Xylem are currently trading in pre-market at $102.70, down $1.48 or 1.42 percent from previous close.