Ecolab Inc. (NYSE:ECL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Ecolab Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 20% to $0.60 in the quarter versus EPS of $0.50 in the year-earlier quarter.
Revenue: Rose 2.17% to $2.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ecolab Inc. reported adjusted EPS income of $0.60 per share. By that measure, the company beat the mean analyst estimate of $0.59. It missed the average revenue estimate of $2.88 billion.
Quoting Management: Douglas M. Baker, Jr., Ecolab’s chairman and chief executive officer said, “The first quarter earnings reached the top end of our forecast range as we delivered excellent earnings growth despite comparison to a strong period last year and challenging market conditions in 2013. Our team did a good job delivering results, with new account growth, appropriate pricing and significant synergy and cost savings driving the strong double-digit earnings improvement.”
Key Stats (on next page)…
Revenue decreased 5.71% from $3.05 billion in the previous quarter. EPS decreased 32.58% from $0.89 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.87 to a profit $0.85. For the current year, the average estimate has moved down from a profit of $3.58 to a profit of $3.52 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)