What to Expect From Ecolab's Next Quarterly Earnings Report

Barchart · 10/15 13:47

Based in Saint Paul, Minnesota, Ecolab Inc. (ECL) provides water, hygiene, and infection prevention solutions and services. Valued at a market cap of $73.2 billion, the company's programs and services help promote safe food, maintain clean environments, and optimize water and energy use. ECL is expected to announce its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 29.

Ahead of this event, analysts expect the chemicals company to report a profit of $1.82 per share, up 18.2% from $1.54 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters.

Its adjusted earnings of $1.68 per share for the last quarter outpaced the consensus estimates by 1.2%. The company benefited from solid growth in its institutional & specialty and pest elimination segments and significant organic operating income margin expansion, fueled by lower supply chain costs, value pricing, and volume growth.

For fiscal 2024, analysts expect ECL to report an EPS of $6.65, up 27.6% from $5.21 in fiscal 2023.

Shares of ECL have rallied 31.3% on a YTD basis, outperforming both the S&P 500 Index's ($SPX) 22.5% surge and the Materials Select Sector SPDR Fund’s (XLB) 13.3% return over the same period.

Despite beating Wall Street’s earnings estimates, shares of ECL plunged 7.7% after its Q2 earnings release on Jul. 30, primarily due to its reported revenue of $3.99 billion missing the consensus estimates of $4.03 billion.

Analysts' consensus view on Ecolab’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 25 analysts covering the stock, 11 recommend a "Strong Buy," two suggest a "Moderate Buy," and 12 indicate a “Hold” rating.

This configuration is more bullish than three months ago, with eight analysts suggesting a "Strong Buy." The average analyst price target for ECL is $265.95, indicating a 1.8% potential upside from the current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.