Xylem (NYSE: XYL) reported Q2 EPS of $0.55, $0.02 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.17 billion.

Full-year 2017 Outlook

Xylem now forecasts full-year 2017 revenue in the range of $4.65 billion to $4.70 billion, up 24 to 25 percent, including growth from previously announced acquisitions and projected impacts of foreign exchange translation. On a pro forma organic basis, Xylem projects revenue growth of three to four percent. On an organic basis, which excludes the impact of acquisitions and the impact of foreign exchange translation, Xylem’s revenuegrowth is now anticipated to be in the range of two to three percent.

Full-year 2017 adjusted operating margin is expected to be in the range of 13.2 to 13.7 percent. The Company increased its forecast for full-year earnings to reflect its updated assumption for foreign exchange impact. The Company now expects to deliver adjusted earnings per share of $2.30 to $2.40. This represents an increase of 13 to 18 percent from Xylem’s 2016 adjusted results. The Company’s adjusted earnings outlook excludes projected integration, restructuring and realignment costs, which now are forecast to be approximately $40 million for the year. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

GUIDANCE:

Xylem sees Q3 2017 EPS of $2.30-$2.40. Xylem sees Q3 2017 revenue of $4.65-4.7 billion.

Highlights:

• Second quarter 2017 reported net income was $99 million or $0.55 per share; Adjusted net income for the quarter was $106 million or $0.59 per share, up 23 percent versus the prior year period
• Xylem delivered $1.2 billion in second quarter 2017 revenue, up 25 percent year-over-year including the impact of acquisitions
• Orders exceeded $1.2 billion in the second quarter, growing eight percent organically
• Reported operating margin increased 20 basis points to 11.9 percent; Adjusted operating margin increased 100 basis points excluding purchase accounting amortization impact
• Xylem increases its full-year 2017 forecast for adjusted earnings per share to $2.30 to $2.40, which reflects the expected impact of foreign exchange translation

For earnings history and earnings-related data on Xylem (XYL) click here.