Ecolab's Earnings Beat Last Year's by 19%
Ecolab (NYS: ECL) reported earnings on July 30. Here are the numbers you need to know.
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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The article Ecolab's Earnings Beat Last Year's by 19% originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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