Valued at a market cap of $69.1 billion, Saint Paul, Minnesota-based Ecolab Inc. (ECL) provides water, hygiene, and energy technologies and services, promoting safe food, clean environments, and efficient water and energy use. Serving global markets in food, energy, healthcare, industrial, and hospitality sectors, Ecolab operates through Global Industrial; Global Institutional & Specialty; Global Healthcare & Life Sciences; and Other segments. It is all set to unveil its fiscal Q2 earnings results before the market opens on Tuesday, Jul. 30.
Ahead of this event, analysts expect ECL to report a profit of $1.66 per share, up 33.9% from $1.24 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarters.
In the most recent quarter, the company’s EPS of $1.34 jumped 52.3% year over year and exceeded the consensus estimate marginally, thanks to strategic growth-oriented investments and volume growth.
For fiscal 2024, analysts expect ECL to report EPS of $6.58, up 26.3% from $5.21 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 12.5% annually to $7.40.
Shares of ECL surged 21.9% on a YTD basis, outperforming both the S&P 500 Index’s ($SPX) gains of 18.1% and S&P 500 Materials Sector SPDR’s (XLB) 5.5% returns during the same time frame.
Adding to the solid momentum, the stock experienced a 2% jump on April 30 after the Q1 earnings announcement. The company registered a robust annual uptick in its top and bottom lines and exceeded Wall Street’s expectations. The investors reacted positively to its decision to sell its global surgical solutions business for $950 million, a move intended to enhance its focus on high-quality operations within the global healthcare sector.
Additionally, the company raised its fiscal 2024 adjusted EPS outlook, projecting between $6.40 and $6.70, and anticipating continued strong performance driven by strategic initiatives and market leadership.
Overall, the consensus analyst rating on ECL stock is cautiously bullish, with a "Moderate Buy" rating. Out of 23 analysts covering the stock, opinions include eight "Strong Buy,” two “Moderate Buy,” and 13 "Hold." This consensus, however, is slightly more bullish than a month ago, with seven “Strong Buy” ratings on the stock.
The average analyst price target for ECL is $252.35, suggesting a potential upside of 4.3% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
