Unpacking Q4 Earnings: Xylem (NYSE:XYL) In The Context Of Other Water Infrastructure Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how water infrastructure stocks fared in Q4, starting with Xylem (NYSE:XYL).

Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 5 water infrastructure stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.1%.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Xylem (NYSE:XYL)

Xylem reported revenues of $2.26 billion, up 6.5% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

“The team delivered a strong fourth quarter to close a record-breaking year for Xylem,” said Matthew Pine, Xylem’s CEO.

Interestingly, the stock is up 5.4% since reporting and currently trades at $129.29.

Is now the time to buy Xylem? Find out by reading the original article on StockStory, it’s free.

Best Q4: Energy Recovery (NASDAQ:ERII)

Energy Recovery reported revenues of $67.08 million, up 17.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.

The market seems content with the results as the stock is up 2.5% since reporting. It currently trades at $15.05.

Weakest Q4: Tennant (NYSE:TNC)

Tennant reported revenues of $328.9 million, up 5.6% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.

Tennant delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.7% since the results and currently trades at $85.03.

Mueller Water Products (NYSE:MWA)

Mueller Water Products reported revenues of $304.3 million, up 18.7% year on year. This number surpassed analysts’ expectations by 5.4%. It was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Mueller Water Products scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 8.9% since reporting and currently trades at $25.16.

Watts Water Technologies (NYSE:WTS)

Watts Water Technologies reported revenues of $540.4 million, down 1.3% year on year. This print topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.

Watts Water Technologies had the slowest revenue growth among its peers. The stock is up 1.5% since reporting and currently trades at $212.28.

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This content was originally published on Stock Story