Xylem (NYSE: XYL) reported Q4 EPS of $0.76, in-line with the analyst estimate of $0.76.

• Fourth quarter 2017 reported net income was $71 million or $0.40 per share; Adjusted net income for the quarter was $137 million or $0.76 per share, up 15 percent versus the prior year period
• Full-year 2017 reported net income was $331 million or $1.83 per share; Adjusted net income was $433 million or $2.40 per share, up 18-percent year-over-year
• Xylem delivered $4.7 billion in revenue for the full year, representing pro forma organic growth of four percent
• Full-year free cash flow grew 41 percent to $544 million, representing a 147-percent conversion
• Company increases quarterly cash dividend by 17 percent
• Xylem projects full-year 2018 organic revenue growth of four to six percent, adjusted earnings per share of $2.82 to $2.97

Full-year 2018 Outlook

Xylem forecasts full-year 2018 revenue in the range of $5.1 to $5.2 billion, up eight to 10 percent, including growth from previously announced acquisitions. On an organic basis, Xylem’s revenue growth is anticipated to be in the range of four to six percent.

Full-year 2018 adjusted operating margin is expected to be in the range of 14.0 to 14.4 percent, resulting in adjusted earnings per share of $2.82 to $2.97. This represents an increase of 18 to 24 percent from Xylem’s 2017 adjusted results. The Company’s adjusted earnings outlook excludes projected integration, restructuring and realignment costs of approximately $35 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 FY2018 EPS of $2.82-$2.97, versus the consensus of $2.80. Xylem sees FY2018 revenue of $5.1-5.2 billion, versus the consensus of $4.99 billion.

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