- Ecolab forecasts an adjusted EPS (Earnings Per Share) of $1.27 to $1.37 for the first quarter, beating estimates of $1.12.
- The company reported adjusted EPS of $1.55 for the fourth quarter, slightly above the estimate of $1.54.
- Net sales for the fourth quarter reached $3.94 billion, up 7.3% year-on-year, slightly below the estimate of $3.95 billion.
- The adjusted gross margin was 42.1%, compared to 38.8% year-on-year, and above the estimate of 41.3%.
- Global Industrial sales were $1.86 billion, an increase of 4.6% year-on-year, slightly below the estimate of $1.87 billion.
- The operating income for Global Industrial was $319.6 million, up 19% year-on-year.
- Global Healthcare and Life Sciences sales were $409.3 million, up 2.3% year-on-year, slightly below the estimate of $410.3 million.
- However, the operating income for Global Healthcare and Life Sciences was down 22% year-on-year to $47.8 million.
- Global Institutional & Specialty sales were $1.29 billion, an increase of 14% year-on-year, above the estimate of $1.26 billion.
- The operating income for Global Institutional & Specialty was $237.5 million, up 44% year-on-year.
- Ecolab anticipates special charges of approximately $0.08 per share for the first quarter of 2024, mainly due to restructuring charges.
- The company expects full-year adjusted EPS for 2024 in the range of $6.10 to $6.50, a 17% to 25% increase from $5.21 in 2023.
- Ecolab won a significant amount of new business, launched new technologies, improved customer value and productivity by leveraging digital capabilities.
Ecolab Inc on Smartkarma
Ecolab Inc, a global leader in water, hygiene, and energy technologies, has recently been covered by top independent analysts on Smartkarma, an independent investment research network. According to Baptista Research, the company’s recent quarter results were mixed, with revenues falling short of market expectations. However, Ecolab showed strong resilience in tough times, surpassing the analyst consensus in terms of earnings. The company’s performance was driven by a 7% organic sales growth and an 18% surge in adjusted earnings per share, demonstrating exceptional execution despite unpredictable macro conditions.
In another report by Baptista Research, the focus was on Ecolab’s sustainable competitive advantage. The company’s recent results also showed a mixed set, with revenues below Wall Street expectations but above-par earnings. However, Ecolab’s effective execution and easing inflationary pressures contributed to reaching the upper end of its projected Q2 earnings growth range. In this report, the analysts carried out a fundamental analysis of the company’s historical financial statements to assess its potential for long-term success.
A look at Ecolab Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma’s Smart Scores, Ecolab Inc has a positive long-term outlook. The company has received high scores in growth and momentum, indicating strong potential for future growth and performance. Ecolab Inc is a global provider of water, hygiene, and energy technologies and services, catering to various industries such as foodservice, healthcare, and oil and gas. With a strong focus on innovation and customer satisfaction, the company has been able to maintain a steady growth rate and establish a solid presence in the market.
Despite lower scores in value and dividend, Ecolab Inc has proven to be resilient in the face of challenges. The company’s services, including water treatments, cleaning solutions, and pest elimination, are essential for businesses in various industries, making Ecolab Inc a reliable and in-demand partner. With its high growth and momentum scores, Ecolab Inc is well-positioned to continue providing top-notch services and driving long-term success for both the company and its customers.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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