Back to top

Image: Bigstock

Ecolab (ECL) Beats Earnings and Revenue Estimates in Q2

Read MoreHide Full Article

Ecolab Inc. (ECL - Free Report) reported second-quarter 2017 adjusted earnings (excluding special gains, charges and tax items) of $1.13 per share, which came above the Zacks Consensus Estimate of $1.12. Earnings improved from $1.08 reported in the year-ago quarter.

Adjusted quarterly net sales were $3.46 billion, up 4% from the year-ago period. Also, net sales came above the Zacks Consensus Estimate of $3.40 billion. The upside came from new business gains, better pricing, product innovation and cost efficiencies. This more than offset higher delivered product costs.

Quarter Details

Global Industrial segment’s sales grew 3% year over year to almost $1.21 billion at fixed currency. This was driven by major gains in Paper, with modest increases in Food & Beverage and Water. North America and Latin America led the Global Industrial regional growth. Acquisition-adjusted fixed currency operating income decreased 4% due to higher delivered product costs.

Global Institutional segment sales increased 3% to $1.22 billion, led by strong growth in the Specialty and Healthcare business lines. Acquisition-adjusted fixed currency operating income increased 3% as pricing and sales volume gains more than offset innovation cum customer investments and higher delivered product costs.

Global Energy segment sales increased 5% to $792.4 million owing to strong growth in the well stimulation business and modest gains in the downstream business. Acquisition-adjusted fixed currency operating income decreased 4% due to higher delivered product costs and lower pricing.

Sales from the Other segment climbed 6% year over year to $215.3 million on account of strong growth in Pest Elimination business. Sales in this segment witnessed robust growth in North America. Fixed currency operating income fell 3% as pricing and sales volume gains were offset by higher field investments.

 

Ecolab Inc. Price, Consensus and EPS Surprise

 

Ecolab Inc. Price, Consensus and EPS Surprise | Ecolab Inc. Quote

Outlook

For the third quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of $1.36–$1.44, compared with $1.28 a year ago.

Zacks Rank & Stocks to Consider

Currently, Ecolab carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (EW - Free Report) , CryoLife, Inc. and Fresenius Medical Care Corporation (FMS - Free Report) .  Fresenius Medical Care sports a Zacks Rank #1 (Strong Buy), while Edwards Lifesciences and CryoLife carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a one-year return of 2.3%.

CryoLife delivered a strong return of 35.8% over the last one year. The stock reported a positive earnings surprise of 20% in the previous quarter.

Fresenius Medical Care delivered an impressive return of 4.3% over the last one year. The company delivered a positive earnings surprise of 20.5% in the last reported quarter.

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 >>

Published in