Premium water solutions provider, Xylem Inc. XYL reported mixed second-quarter 2017 results.EarningsQuarterly adjusted earnings came in at 59 cents per share, surpassing the Zacks Consensus Estimate of 57 cents. In addition, the bottom line came in higher than the year-ago tally of 48 cents per share.RevenuesQuarterly revenues were $1,164 million, up 24.9% year over year. However, the top line missed the Zacks Consensus Estimate of $1,172 million.Xylem Inc. Price, Consensus and EPS Surprise Xylem Inc. Price, Consensus and EPS Surprise | Xylem Inc. QuoteMargins and CostsXylem’s cost of revenues for the reported quarter came in at $705 million, jumping 25.2% year over year. Gross profit margin during the quarter was 39.4%, down 20 basis points (bps) year over year.Selling, general and administrative expenses came in at $270 million compared to $227 million incurred in the year-ago period. Research and development expenses were $44 million, as against $27 million reported in the prior-year quarter.Quarterly adjusted operating margin was 13.3%, up 30 basis points (bps) year over year.Segmental DetailsThe Water Infrastructure segment generated revenues of $482 million, as against $484 million recorded in the comparable period last year.Revenues from the Applied Water segment totaled $361 million, down from $366 million recorded in the year-ago quarter.The company’s recently formed Sensus & Analytics business segment generated revenues worth $321 million in the reported quarter, up from $82 million recorded in the year-earlier period.Balance Sheet and Cash FlowXylem exited second-quarter 2017 with cash and cash equivalents of $288 million compared with $308 million as of Dec 31, 2016. Long-term debt was $2,168 million, as against $2,108 million recorded at the end of 2016.In first-half 2017, Xylem generated cash of $151 million from operating activities compared with $125 million recorded in the prior-year period. Capital expenditure was $77 million, as against $62 million incurred in the year-ago quarter. OutlookXylem raised its revenue guidance for 2017 from 4.5–$4.6 billion to the $4.65–$4.70 billion range. Notably, eliminating the impact of acquisitions and foreign currency translation, this Zacks Rank #2 (Buy) company anticipates to accrue organic revenue growth within the range of 2–3% for 2017. Moreover, it lifted its adjusted earnings guidance for the full year from $2.23–$2.38 per share to the $2.30–$2.40 per share range.Other Key PicksOther top-ranked stocks in the industry are listed below:Apogee Enterprises, Inc. APOG has an average positive earnings surprise of 3.42% for the last four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Deere & Company DE sports a Zacks Rank #1 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.AGCO Corporation AGCO, which also sports a Zacks Rank #1 at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters.Will You Make a Fortune on the Shift to Electric Cars?Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.It's not the one you think.See This Ticker Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Xylem Inc. (XYL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research