The 10-second takeaway
For the quarter ended June 30 (Q2), Ecolab missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Gross margins contracted, operating margins increased, net margins expanded.
Ecolab chalked up revenue of $3.34 billion. The 15 analysts polled by S&P Capital IQ anticipated a top line of $3.39 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.96 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 $0.86. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.84 per share. Non-GAAP EPS of $0.86 for Q2 were 19% higher than the prior-year quarter's $0.72 per share. GAAP EPS of $0.69 for Q2 were 11% higher than the prior-year quarter's $0.62 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 45.2%, 50 basis points worse than the prior-year quarter. Operating margin was 12.8%, 30 basis points better than the prior-year quarter. Net margin was 6.4%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.56 billion. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $13.42 billion. The average EPS estimate is $3.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 275 members out of 289 rating the stock outperform, and 14 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 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 $90.87.
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