Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Xylem's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of water treatment company Xylem (NYSE: XYL  ) fell 12% today after reporting earnings.

So what: Revenue fell 1% in the second quarter to $960 million, which was short of a $967.9 million estimate from analysts. Net income fell nearly 50% to $46 million, or $0.25 per share. Adjusted earnings of $0.36 fell short of estimates by $0.08.  

Now what: To make matters worse, management reduced full-year outlook to $1.40-$1.50 per share, which is $0.39 lower than previous estimates. Even at the top end of estimates the stock trades at 17 times forward earnings, which isn't a steal given the decline in revenue. I'd stay away from this stock today and wait for improved earnings before jumping in again.

Interested in more info on Xylem? Add it to your watchlist by clicking here.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 30, 2013, at 6:03 PM, watersports2001 wrote:

    I had an alert set and forgot about it. Regardless of loss its still too close to estimates. It would need to have a crappier day to consider this a bad day to be good to take a jump.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2567549, ~/Articles/ArticleHandler.aspx, 8/29/2016 4:27:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,502.99 107.59 0.58%
S&P 500 2,180.38 11.34 0.52%
NASD 5,232.33 13.41 0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/29/2016 4:01 PM
XYL $50.98 Up +0.46 +0.92%
Xylem CAPS Rating: *****