Updated Aug 11 at 10:15am ET.
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Xylem has agreed to buy Cornell Pump and Roper Pump from a company called Indicor. These businesses specialize in pumps for heavy industrial use, which are the machines used to move liquids in factories, farms, and energy plants. This deal helps Xylem move beyond its traditional focus on water utilities and into more diverse industrial sectors.
This is a significant move because it follows Xylem's massive acquisition of Evoqua last year. It shows the company is still looking to grow by buying up smaller rivals that have specialized technology. If Xylem can successfully fold these brands into its global sales network, it should be able to sell more equipment to its existing industrial customers while gaining new ones in high-growth areas.
Source: Business Wire
UBS raised its price target from $129 to $135 following the latest quarterly results. This new target is still below the average analyst target of about $152. The firm's neutral rating suggests it sees the company as fairly valued at current prices rather than a clear bargain.
Source: UBS
A subsidiary of the company signed a deal to buy WaterFleet, a firm that provides mobile water and wastewater services for workforces. The $200 million deal adds to the company's ability to provide on-site water management.
This is a small acquisition compared to the company's $28 billion market value. However, it fits the strategy of moving beyond just selling hardware into providing specialized services that customers pay for over time.
Source: Business Wire
Barclays increased its price target from $154 to $159 after the company's strong quarterly performance. The firm kept its overweight rating, which is a way of saying it expects the stock to do better than the broader market. This target is higher than the average analyst view of $152.
Source: Barclays
The company earned $1.46 per share last quarter, which was higher than the $1.35 analysts expected. Revenue reached $2.3 billion, matching what the market anticipated. The most striking detail was a 41 percent jump in organic orders, which tracks new business excluding the impact of recent acquisitions.
Management also raised its profit forecast for the full year. They noted that demand for water-treatment equipment is growing as companies build more data centers for AI, which require massive amounts of water for cooling. This suggests the company is finding new ways to grow beyond its traditional utility customers.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts raised their price targets in a flurry of activity following the company's strong second-quarter earnings report. Most analysts are split between bullish and neutral ratings, and the average target price suggests a 23% gain from today's price.
Management has a perfect record of beating expectations over the last two years. They consistently set a bar they can clear, which makes their financial targets easier to trust.
| Expectation | |
|---|---|
| EPS | $1.47 |
| Revenue | $2.29B |
