-- 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.