Xylem Inc. raised its dividend by 10 percent and reported record fourth-quarter revenue of $1.03 billion, almost 5 percent higher than analysts’ estimates.
The shares of the ITT Corp. spinoff surged as much as 9.3 percent in New York trading, the most since Oct. 29, and were 8.7 percent higher at $35.66 at 12:20 p.m. local time.
Xylem, whose pumps cleared New York tunnels of floodwaters during Hurricane Sandy, increased its quarterly dividend to 12.8 cents from 11.6 cents and reported adjusted earnings per share of 56 cents compared with 15 analyst estimates of 52 cents. It forecast full-year 2014 revenue of $4 billion.
Fourth-quarter revenue rose 7 percent from a year earlier on industrial and utility demand for water infrastructure and applied water products, the Rye Brook, New York-based company said in a statement. Stern Agee & Leach Inc. analyst Kevin Bennett called Xylem’s results a “solid beat.”