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Ecolab (ECL) to Report Q4 Earnings: What's in the Offing?
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Ecolab, Inc. (ECL - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 16, before the opening bell. The company’s earnings beat estimates by 5.5% in the last reported quarter.
Estimate Picture
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.10 billion, suggesting a fall of 19% from the year-ago period’s reported number. The same for fourth-quarter adjusted earnings per share stands at $1.23, indicating a decline of 25.9% from the prior-year quarter’s reported figure.
Let’s delve deeper.
Global Industrial a Boon
Although the Global Industrial segment witnessed a sales decline in the third quarter due to COVID-19 impacts, the segment thereafter saw steady income growth owing to effective pricing and lower costs, a trend that most likely continued in the fourth quarter on the back of growth across Water, Food & Beverage and LifeSciences sub-units.
In October 2020, the company attained an approval for its Peroxide Multi Surface Cleaner and Disinfectant from the U.S. Environmental Protection Agency (EPA) for use against SARS-CoV-2, the virus responsible for COVID-19. The product is the first EPA-registered disinfectant, which is proven to be effective at killing the SARS-CoV-2 virus and also approved for use with electrostatic spray technology.
In the same month, the company launched a path-breaking product called Sink & Surface Cleaner Sanitizer to address unexpected hygiene challenges. It is the first EPA-registered concentrated no-rinse, 2-in-1 cleaner and sanitizer for food contact surfaces that can kill emerging viral pathogens in 30 seconds.
In November, Ecolab became the first company to receive a U.S. EPA product approval for disinfection of biofilms in wastewater drains with respect to its Virasept product. In the same month, it unveiled Exelerate TUFSOIL, a breakthrough ready-to-use gel cleaner and degreaser for food and protein manufacturers.
All these developments are likely to have driven the company’s Global Industrial segment in the to-be-reported quarter.
Solid prospects in the food retail segment on net new business gains are expected to get reflected in the results for the quarter to be reported. A shift from restaurants to food retail and increasing demand for hygiene programs are consistently boosting the Food & Beverage business.
Other Factors at Work
It is important to mention here that the company’s Institutional and Pest Elimination business divisions were directly impacted by the COVID-led shutdowns of travel, dining as well as entertainment facilities in the third quarter despite a sequential improvement. This trend is expected to have persisted through the to-be-reported quarter as well.
Nonetheless, Global Healthcare and Life Sciences segment is expected to have seen surging sales during the fourth quarter, attributable to sustained favorable fundamental trends and buoyant demand for cleaning and sanitizing services including large one-time sanitizer orders.
In October, Ecolab introduced the Precision Dispensing System for Membranes, a precise, easy-to-use and dependable programmable logic controller-based (PLC) cleaning chemical dispenser. This automated Precision Dispensing System can boost worker safety, facilitate productivity and extend asset life for whey processors. With the rollout of this system, Ecolab’s Global Energy segment is likely have received a boost during the fourth quarter.
Earnings Whispers
Our proven model does not predict a beat for Ecolab this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise but that is not the case here as you will see below.
Earnings ESP: Ecolab has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ecolab carries a Zacks Rank #2, currently.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #3 at present.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +2.09% and is Zacks #2 Ranked.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Ecolab (ECL) to Report Q4 Earnings: What's in the Offing?
Ecolab, Inc. (ECL - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 16, before the opening bell. The company’s earnings beat estimates by 5.5% in the last reported quarter.
Estimate Picture
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.10 billion, suggesting a fall of 19% from the year-ago period’s reported number. The same for fourth-quarter adjusted earnings per share stands at $1.23, indicating a decline of 25.9% from the prior-year quarter’s reported figure.
Let’s delve deeper.
Global Industrial a Boon
Although the Global Industrial segment witnessed a sales decline in the third quarter due to COVID-19 impacts, the segment thereafter saw steady income growth owing to effective pricing and lower costs, a trend that most likely continued in the fourth quarter on the back of growth across Water, Food & Beverage and LifeSciences sub-units.
In October 2020, the company attained an approval for its Peroxide Multi Surface Cleaner and Disinfectant from the U.S. Environmental Protection Agency (EPA) for use against SARS-CoV-2, the virus responsible for COVID-19. The product is the first EPA-registered disinfectant, which is proven to be effective at killing the SARS-CoV-2 virus and also approved for use with electrostatic spray technology.
In the same month, the company launched a path-breaking product called Sink & Surface Cleaner Sanitizer to address unexpected hygiene challenges. It is the first EPA-registered concentrated no-rinse, 2-in-1 cleaner and sanitizer for food contact surfaces that can kill emerging viral pathogens in 30 seconds.
In November, Ecolab became the first company to receive a U.S. EPA product approval for disinfection of biofilms in wastewater drains with respect to its Virasept product. In the same month, it unveiled Exelerate TUFSOIL, a breakthrough ready-to-use gel cleaner and degreaser for food and protein manufacturers.
All these developments are likely to have driven the company’s Global Industrial segment in the to-be-reported quarter.
Ecolab Inc. Price and EPS Surprise
Ecolab Inc. price-eps-surprise | Ecolab Inc. Quote
Solid prospects in the food retail segment on net new business gains are expected to get reflected in the results for the quarter to be reported. A shift from restaurants to food retail and increasing demand for hygiene programs are consistently boosting the Food & Beverage business.
Other Factors at Work
It is important to mention here that the company’s Institutional and Pest Elimination business divisions were directly impacted by the COVID-led shutdowns of travel, dining as well as entertainment facilities in the third quarter despite a sequential improvement. This trend is expected to have persisted through the to-be-reported quarter as well.
Nonetheless, Global Healthcare and Life Sciences segment is expected to have seen surging sales during the fourth quarter, attributable to sustained favorable fundamental trends and buoyant demand for cleaning and sanitizing services including large one-time sanitizer orders.
In October, Ecolab introduced the Precision Dispensing System for Membranes, a precise, easy-to-use and dependable programmable logic controller-based (PLC) cleaning chemical dispenser. This automated Precision Dispensing System can boost worker safety, facilitate productivity and extend asset life for whey processors. With the rollout of this system, Ecolab’s Global Energy segment is likely have received a boost during the fourth quarter.
Earnings Whispers
Our proven model does not predict a beat for Ecolab this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise but that is not the case here as you will see below.
Earnings ESP: Ecolab has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ecolab carries a Zacks Rank #2, currently.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +46.94% and a Zacks Rank. of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #3 at present.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +2.09% and is Zacks #2 Ranked.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>