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  "documentTitle": "Xylem Inc. (XYL)",
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  "presentationDate": "2023-08-09 00:00:00",
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      "text": "The CFO talked about acquisitions being accretive to margins over-time, but the exact opposite appears to have occurred.",
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      "text": "With Evoqua having recently been charged by the SEC for fraudulent revenue accounting practices from 2016-2018 related to premature revenue recognition, we are struck by its ability to almost never miss sell-side consensus revenue estimates...",
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      "text": "We start with the customer in all deals and saying what does this do from that standpoint. But naturally, costs come out. Normally, we'll see gross margin fall to EBITDA. And within 1 year to 1.5 years after the acquisitions, they're highly accretive -- to our margins.",
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      "kind": "quote",
      "text": "We start with the customer in all deals and saying what does this do from that standpoint. But naturally, costs come out. Normally, we'll see gross margin fall to EBITDA. And within 1 year to 1.5 years after the acquisitions, they're highly accretive -- to our margins. — Evoqua CFO, CS Industrial Conf, Dec 2, 2022",
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      "text": "Source: Bloomberg (1) See deal presentation, slide 9",
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      "text": "But Consistent Gross Margin Disappointment table",
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      "kind": "title",
      "text": "Focus On Evoqua's Gross Margin, Not On Revenue",
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