Xylem (XYL) Posts Strong Q4, but Full-Year Guidance Disappoints
Financial Highlights:
* Revenue: $2.26 billion (6.5% YoY growth, 3.4% beat)
* Adjusted EPS: $1.18 (4.9% beat)
* Adjusted EBITDA: $473 million (3.7% beat)
* Full-Year Revenue Guidance: $8.65 billion (1% growth, 2.1% below estimates)
* Adjusted EPS Guidance: $4.60 (1.9% below estimates)
Key Metrics:
* Operating Margin: 11.8% (up from 10% YoY)
* Free Cash Flow Margin: 21.1% (up from 17% YoY)
* Organic Revenue Growth: 7% YoY (9% in Q4 2023)
* Market Capitalization: $29.83 billion
Company Overview:
Xylem is a water technology company providing solutions for water infrastructure, conservation, and treatment.
Sales Growth:
* 10.3% CAGR over the last five years
* 24.5% annualized revenue growth over the last two years
Financial Health:
* Strong gross margin
* Rising operating margin
* Mixed Q4 earnings with revenue and EPS beats but guidance misses
Investment Considerations:
* Impressively exceeded expectations in organic revenue and EPS for Q4
* Disappointing full-year guidance
* Overall mixed quarter, warranting further analysis for investment decisions
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