Xylem (NYSE: XYL) reported Q2 EPS of $0.73, $0.02 better than the analyst estimate of $0.71. Revenue for the quarter came in at $1.32 billion versus the consensus estimate of $1.28 billion.

• Second quarter 2018 reported net income was $115 million or $0.64 per share; Adjusted net income for the quarter was $131 million or $0.73 per share, up 24 percent versus the prior year period
• Xylem delivered $1.3 billion in second quarter 2018 revenue, up 13 percent year-over-year including the impact of foreign exchange and acquisitions
• Reported and adjusted EBITDA margin increased 80 and 70 basis points, respectively
• Second quarter free cash flow conversion increased 800 basis points year-over-year

Patrick Decker, President and Chief Executive Officer of Xylem, said, “Our second quarter results were very strong as our team continued to successfully execute on our strategy to generate consistent, profitable growth. Once again, we delivered high single-digit organic growth in revenue and orders globally, reflecting solid growth in each of the major geographic markets in which we operate. We are capturing share in the utilities end market where strong orders and backlog growth reflect continued momentum. As we indicated previously, we began implementing price increases earlier this year and I’m pleased with the traction we’ve gained in the marketplace. Our ability to successfully realize meaningful pricing impact, while continuing to execute our productivity initiatives, has and will continue to help us mitigate higher input costs from inflationary pressures and tariffs. Our strong operational performance in the first half of the year and continued momentum underpins our confidence in our updated expectations for the full year.”

GUIDANCE:

Xylem sees FY2018 EPS of $2.85-$2.95, versus the consensus of $2.89. Xylem sees FY2018 revenue of $5.2 billion, versus the consensus of $5.18 billion.

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