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Ecolab (ECL) Q3 Earnings Beat Estimates, Revenues Top

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Ecolab Inc. (ECL - Free Report) , founded in 1923 and headquartered in St. Paul, MN, is a leading provider of cleaning, sanitizing, food safety and infection prevention products and services.

The company serves the foodservice, food and beverage processing, healthcare, and hospitality markets both in the U.S. as well as internationally. Ecolab’s 10 operating units have been aggregated into 4 reportable segments, namely Global Industrial, Global Institutional, Global Energy and Other.

Currently, Ecolab has a Zacks Rank #4 (Sell) but that could change following its third-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1(Strong Buy)  Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Ecolab posted third quarterly adjusted earnings of $1.37 per share which came above the Zacks Consensus Estimate of $1.36. This also came higher than the year-ago quarterly earnings of $1.28.

Sales: Adjusted quarterly net sales were $3.56 billion, up 5% from the year-ago quarter. Also, net sales came marginally above the Zacks Consensus Estimate of $3.55 billion.

Ecolab Inc. Price and EPS Surprise

 

Key Stats: Quarterly results were boosted by improved sales gains, new product innovation and cost savings. This more than offset higher delivered product costs in the reported quarter. However, Ecolab expects the impact of the hurricanes on fourth-quarter sales and costs will be approximately 4 cents per share.

Ecolab slashed its full-year earnings guidance as a result of the impact of the hurricanes and the divestiture of Equipment Care business segment. The company expects adjusted earnings for the full year in the range of $4.65 to $4.75, much lower than the previously issued range of $4.70 to $4.90.

For the fourth quarter, Ecolab expects adjusted diluted earnings in the band of $1.35 to $1.45 per share, compared with adjusted earnings of $1.25 per share in the year-ago quarter.

Stock Price: Shares have risen roughly 11.7% year to date, while the broader industry has gained 11% over the same time frame. However, following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Ecolab earnings report later!

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