Water technology company Xylem (NYSE:XYL) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.

Xylem beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.17 billion, up 26% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and organic revenue estimates.

Is Xylem a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Xylem’s revenue to grow 4.7% year on year to $2.17 billion, slowing from the 50.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.11 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Xylem has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.

Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 15.9%, and Snap-on reported flat revenue, topping estimates by 7.8%. Snap-on traded up 9.4% following the results.

Read our full analysis of Luxfer’s results here and Snap-on’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Xylem is down 4.2% during the same time and is heading into earnings with an average analyst price target of $152.18 (compared to the current share price of $128.70).

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