Ecolab Earnings: Here’s Why Investors are Buying Shares Now

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. Shares are up 2.13%.

Ecolab Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 19.44% to $0.86 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Rose 12.81% to $3.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ecolab Inc. reported adjusted EPS income of $0.86 per share. By that measure, the company beat the mean analyst estimate of $0.84. It missed the average revenue estimate of $3.39 billion.

Quoting Management: Douglas M. Baker, Jr., Ecolab’s chairman and chief executive officer said, “We had a very good quarter. We successfully strengthened our underlying business momentum through good new business gains, effective deployment of new program launches which enabled us to further help our customers meet their operating and sustainability goals, and continued delivery of committed synergies. In addition, our newly-acquired Champion business performed above our expectations which added to an already strong performance.”

Key Stats (on next page)…

Revenue increased 16.21% from $2.87 billion in the previous quarter. EPS increased 43.33% from $0.60 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.03 and has not changed. For the current year, the average estimate is a profit of $3.52, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)