The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ecolab met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins shrank across the board.
Ecolab reported revenue of $3.02 billion. The 14 analysts polled by S&P Capital IQ anticipated revenue of $3.07 billion on the same basis. GAAP reported sales were 74% higher than the prior-year quarter's $1.74 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.87. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.87 per share. GAAP EPS of $0.80 for Q3 were 23% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.5%, 320 basis points worse than the prior-year quarter. Operating margin was 14.2%, 120 basis points worse than the prior-year quarter. Net margin was 7.9%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.06 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $11.90 billion. The average EPS estimate is $2.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members out of 279 rating the stock outperform, and 14 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 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 $71.33.
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