Xylem announced that for the quarter ended June 30, 2020, it expects revenue declines of approximately -14 percent on a reported basis, and -12 percent organically, versus previous guidance of -20 to -30 percent.
Xylem expects second quarter EPS in the range of $0.15 to $0.17 on a reported basis, and $0.37 to $0.39 on an adjusted basis, excluding restructuring, realignment and special items.
Xylem further announced it signed two milestone deals during the second quarter. The Company won a large-scale irrigation project in the Telangana region of India, worth approximately $115 million, making it the largest deal Xylem has signed in the country, to date. Revenue from the project is expected to be recognized over the next two to three years, starting late in the fourth quarter of 2020. Separately, in the United Kingdom, Xylem will be deploying smart metering, software and network solutions for Anglian Water. The $90 million contract will see implementation across Anglian’s service area, which covers a large portion of the east of England, with revenue recognition expected over the next five years, beginning late in the fourth quarter of 2020.
“The preliminary second quarter results demonstrate that our team, across the world, has continued to serve our customers well, particularly those delivering essential services in their communities, despite the difficulties of COVID-19,” said Patrick Decker, president and CEO of Xylem. “While we are still seeing considerable impact from the pandemic, we’re pleased we have been able to navigate the headwinds so far, setting a better-than-anticipated pace.
“We are fully operational across our manufacturing network, and are in a solid position to weather the uncertainties of this changeable and challenging environment,” continued Decker. “The large deals we are winning – both in developed and emerging markets – are proof that large-scale projects, and the implementation of transformational technologies, are continuing to move ahead and that Xylem is well positioned to benefit from that momentum over the longer term. We look forward to reporting full results for the quarter in a few weeks’ time.”
Q2 2020 Reporting
Xylem will release its second quarter 2020 results on July 30, 2020, at 6:55 a.m. At 9:00 a.m. (ET), Xylem’s senior management team will host a conference call with investors to discuss the results.