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



Why Xylem Shares Jumped

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 solutions company Xylem  (NYSE: XYL  ) fell 11% today after the company released earnings.

So what: Fourth-quarter revenue rose 6.6% to $1.03 billion and adjusted net income was up 19% to $103 million, or $0.56 per share. Analysts only expected $990 million in revenue and $0.52 per share in earnings for the quarter.  

Now what: Management also said 2014 revenue will rise 2%-4% to about $4 billion and earnings per share will be between $1.85 and $2, which is in line with estimates. But management also said that if order flow continues and cost controls remain strong the company has big upside. I'm not terribly excited about the stock at 18 times next year's earnings, given the slow top-line growth rate, but if growth picks up the investment thesis could change.

A great stock pick for you
Looking for another great stock for 2014? The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

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: 2823364, ~/Articles/ArticleHandler.aspx, 8/29/2015 5:27:06 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...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 20 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:04 PM
XYL $32.70 Up +0.33 +1.02%
Xylem Inc. CAPS Rating: *****