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Ecolab's (ECL) Earnings, Revenues Miss Estimates in Q4
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Ecolab Inc. (ECL - Free Report) reported fourth-quarter 2016 adjusted earnings (excluding special gains, charges and tax items) of $1.25 per share, which missed the Zacks Consensus Estimate of $1.27. However, earnings improved from $1.22 reported in the year-ago quarter.
Adjusted net sales were $3.35 billion, down 2% from the year-ago quarter. Also, net sales lagged the Zacks Consensus Estimate of $3.43 billion.
Stock Performance
The price performance of the stock has been unfavorable over the last three months. Ecolab registered a return of 7.86%, underperforming the Zacks classified Chemical-Specialty sub-industry’s gain of almost 9.97%.
Global Industrial segment sales grew 2% year over year to almost $1.22 billion at fixed currency. This was driven by major gains in Paper, with modest increases in Food & Beverage and Water. Latin America led the Global Industrial regional growth, with modest gains in North America. Acquisition adjusted fixed currency operating income increased 5% on improved volume and mix, pricing, and cost-saving initiatives.
Global Institutional segment sales increased 5% to $1.14 billion, led by strong growth in the Specialty and Healthcare business lines. Acquisition adjusted fixed currency operating income increased 16% owing to pricing, sales volume gains and a significant increase in the Healthcare margin.
Global Energy segment sales decreased 14% to $760.6 million owing to lackluster performance in both the upstream and downstream businesses. Acquisition adjusted fixed currency operating income decreased 29% due to lower sales volume and reduced pricing. This more than offset cost reduction actions and delivered product cost savings.
Sales from the Other segment climbed 7% year over year to $205.0 million on account of strong growth in Pest Elimination business. Sales for the segment saw robust growth in Asia Pacific, North America and Latin America. Fixed currency operating income rose 6% as pricing and sales volume gains were partially offset by investments in the business and higher fleet-related costs in the quarter.
Outlook
For the first quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of 77 cents to 83 cents.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 22.6%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 33.1% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Ecolab's (ECL) Earnings, Revenues Miss Estimates in Q4
Ecolab Inc. (ECL - Free Report) reported fourth-quarter 2016 adjusted earnings (excluding special gains, charges and tax items) of $1.25 per share, which missed the Zacks Consensus Estimate of $1.27. However, earnings improved from $1.22 reported in the year-ago quarter.
Adjusted net sales were $3.35 billion, down 2% from the year-ago quarter. Also, net sales lagged the Zacks Consensus Estimate of $3.43 billion.
Stock Performance
The price performance of the stock has been unfavorable over the last three months. Ecolab registered a return of 7.86%, underperforming the Zacks classified Chemical-Specialty sub-industry’s gain of almost 9.97%.
Ecolab Inc. Price, Consensus and EPS Surprise
Ecolab Inc. Price, Consensus and EPS Surprise | Ecolab Inc. Quote
Quarter Details
Global Industrial segment sales grew 2% year over year to almost $1.22 billion at fixed currency. This was driven by major gains in Paper, with modest increases in Food & Beverage and Water. Latin America led the Global Industrial regional growth, with modest gains in North America. Acquisition adjusted fixed currency operating income increased 5% on improved volume and mix, pricing, and cost-saving initiatives.
Global Institutional segment sales increased 5% to $1.14 billion, led by strong growth in the Specialty and Healthcare business lines. Acquisition adjusted fixed currency operating income increased 16% owing to pricing, sales volume gains and a significant increase in the Healthcare margin.
Global Energy segment sales decreased 14% to $760.6 million owing to lackluster performance in both the upstream and downstream businesses. Acquisition adjusted fixed currency operating income decreased 29% due to lower sales volume and reduced pricing. This more than offset cost reduction actions and delivered product cost savings.
Sales from the Other segment climbed 7% year over year to $205.0 million on account of strong growth in Pest Elimination business. Sales for the segment saw robust growth in Asia Pacific, North America and Latin America. Fixed currency operating income rose 6% as pricing and sales volume gains were partially offset by investments in the business and higher fleet-related costs in the quarter.
Outlook
For the first quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of 77 cents to 83 cents.
Zacks Rank & Stocks to Consider
Currently, Ecolab carries a Zacks Rank #4 (Sell).
Better-ranked medical stocks are Glaukos Corp. (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy) while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 22.6%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 33.1% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>