Xylem raises profit forecast on demand for water treatment products

(Reuters) - Xylem raised its annual profit forecast on Tuesday after posting higher-than-expected second-quarter results that benefited from demand for its water and waste-water treatment products.

The company said it expects 2024 adjusted profit to come in between $4.18 and $4.28 per share, compared to its previous forecast of $4.10 to $4.25 per share.

Analysts had expected a full-year profit of $4.21 per share, according to LSEG data.

Underlying demand in the company's largest markets remains resilient, said CEO Matthew Pine.

The company also raised its annual revenue outlook to $8.55 billion from about $8.50 billion.

Quarterly revenue rose nearly 26% to $2.17 billion compared with analysts' average estimate of $2.15 billion.

Sales from its water infrastructure unit was $690 million, beating estimates of $655.28 million. The business focuses on transportation, treatment and testing of water and offers a range of products including water & wastewater pumps.

On an adjusted basis, Xylem posted a profit of $1.09 per share, for the quarter ended June 30, beating estimates of $1.05 per share.

(Reporting by Sriparna Roy in Bengaluru; Editing by Saumyadeb Chakrabarty)