The 10-second takeaway
For the quarter ended March 31 (Q1), Ecolab met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Ecolab booked revenue of $2.87 billion. The 14 analysts polled by S&P Capital IQ expected sales of $2.88 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.60. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. Non-GAAP EPS of $0.60 for Q1 were 20% higher than the prior-year quarter's $0.50 per share. GAAP EPS of $0.53 for Q1 were 212% higher than the prior-year quarter's $0.17 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 45.5%, 20 basis points better than the prior-year quarter. Operating margin was 10.8%, 70 basis points better than the prior-year quarter. Net margin was 5.6%, 380 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.38 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $13.45 billion. The average EPS estimate is $3.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 273 members out of 287 rating the stock outperform, and 14 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Ecolab a green thumbs-up, and 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 $82.06.
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