Ecolab
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ecolab missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Revenue details
Ecolab chalked up revenue of $1.85 billion. The 13 analysts polled by S&P Capital IQ anticipated revenue of $1.98 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.70. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share on the same basis. GAAP EPS of $0.34 for Q4 were 38% lower than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 47.6%, 270 basis points worse than the prior-year quarter. Operating margin was 12.3%, 120 basis points worse than the prior-year quarter. Net margin was 4.8%, 350 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.70 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $11.85 billion. The average EPS estimate is $3.02.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 251 members out of 267 rating the stock outperform, and 16 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Ecolab a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ecolab is outperform, with an average price target of $61.20.
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