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Research
Research Alert: Xylem Delivers Q1 Beat; Margins Tick Higher
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:XYL delivered mixed Q1 results, with EPS of $1.12 beating consensus by $0.04 on operational execution, though orders were flat Y/Y. Revenue of $2.1B was flat organically, with strong Measurement & Control (M&C) sales (up 15%) offset by Water Solutions declines (down 15%). We attribute the beat to margin expansion and operational improvements from transformation initiatives, with adjusted EBITDA margin improving 20 bps to 20.6%. Management raised full-year revenue guidance to $9.2B-$9.3B from $9.1B-$9.2B, while maintaining EPS guidance at $5.35-5.60. Segment results were mixed, with M&C serving as a growth engine delivering 18% order growth on robust smart water tech demand, while Water Solutions orders declined 12% due to timing. We believe XYL's 80/20 simplification strategy continues supporting profitability amid inflationary pressures, though we take unchanged EPS guidance as lacking confidence that higher sales will translate to better margins.
$XYL
Research
Research Alert: CFRA Reiterates Sell Opinion On Shares Of United Postal Service, Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target at $92, 12.6x our next-12-month EPS view of $7.34. We trim our 2026 EPS view by $0.06 to $7.00 and 2027 by $0.44 to $7.52. Q1 offered some positives with top- and bottom-line beats and better-than-guided International profits (-15.7% vs. -30.0%). Management maintained its 2026 guidance of $89.7B revenue and 9.6% adjusted operating margin, projecting operational inflection in Q2. We think revenue goals are reasonable, but we think margin goals are overly optimistic as we estimate Q2-Q4 requires an average margin of ~10.7%. Consumer spending trends in the U.S. lead us to believe a pullback was materializing prior to the conflict in Iran and we expect that to accelerate. Declines in B2B volumes (-5.1%) indicate industrial weakness. We think cost recovery via fuel surcharges will fail to deliver on profit protection as consumers become less accepting of price increases. Continued margin compression could pressure dividend feasibility as our 2026 EPS view implies a ~94% payout ratio.
$UPS
Sectors
Sector Update: Financial Stocks Higher in Afternoon Trading
Financial stocks were advancing in Tuesday afternoon trading, with the NYSE Financial Index rising 0.5% and the State Street Financial Select Sector SPDR ETF (XLF) up 0.4%.The Philadelphia Housing Index was decreasing 0.9%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was up 0.6%.Bitcoin (BTC-USD) was falling 1.5% to $76,184, and the yield for 10-year US Treasuries rose 2.6 basis points to 4.36%.In economic news, the Conference Board's measure of consumer confidence rose to 92.8 in April from an upwardly revised 92.2 in March, compared with the 89.0 print expected in a Bloomberg-compiled survey. The poll for preliminary results was conducted from April 1 to April 22, which included the temporary two-week ceasefire in the Iran war.The Richmond Fed's monthly manufacturing index rose to 3 in April from 0 in March, above expectations for 1 in a Bloomberg-compiled poll. Other regional manufacturing data already released have suggested expansion, except for the Dallas Fed's measure.In sector news, Polymarket has had talks with the Commodity Futures Trading Commission in recent weeks as it seeks regulatory approval to bring its main exchange back to the US, Bloomberg reported. Polymarket has technically banned US citizens from trading on its international platform since running afoul of regulators in 2022, and its US-based alternative has failed to fully launch, the report said.In corporate news, JPMorgan Chase (JPM) was selected as the first global banking partner of the Olympic Games, the company and the International Olympic Committee said Tuesday. Separately, JPMorgan is joining HSBC (HSBC) in providing a $6 billion financing for potential suitors of a stake in Kuwait Petroleum's crude oil pipeline network, Reuters reported. JPMorgan shares rose 0.3%, and HSBC was steady.Barclays (BCS) shares decreased 0.2% after Bloomberg reported the bank had reserved 228 million British pounds ($307.9 million) in Q1 to cover the collapse of specialty lender MFS.Commerce Bancshares (CBSH) shares gained 2.1% after it said Tuesday its board approved an increase of 2.5 million shares to its stock buyback program.
$BCS$CBSH$HSBC$JPM