Ecolab Inc. (ECL), headquartered in St. Paul, Minnesota, is a global leader in water, hygiene, and energy technologies and services. Valued at a market cap of $67.7 billion, Ecolab is committed to helping businesses across various industries enhance sustainability, improve operational efficiency, and reduce environmental impact. The company is set to release its Q4 earnings before the market opens on Tuesday, Feb. 11.
Ahead of this event, analysts expect Ecolab to report a profit of $1.77 per share, up 14.2% from $1.55 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. Its adjusted earnings of $1.83 per share for the last quarter slightly exceeded consensus estimates, fueled by robust demand in core services.
For fiscal 2024, analysts expect ECL to report an EPS of $6.62, up 27.1% from $5.21 in fiscal 2023.
Ecolab's shares have rallied 20.2% over the past 52 weeks, trailing the S&P 500 Index's ($SPX) 24.6% gains, However, they have outpaced the Materials Select Sector SPDR Fund’s (XLB) 6.4% returns during the same period.
On Oct. 29, Ecolab shares declined over 1% following the release of its Q3 results. The company reported a 1% year-over-year increase in revenue, totaling $4 billion, which fell short of Wall Street's expectations of $4.02 billion. Reported operating income surged by 85%, mainly due to a net gain from the sale of its global surgical solutions business.
Analysts' consensus view on Ecolab’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 12 recommend a "Strong Buy," one suggests a "Moderate Buy," and 11 indicate a “Hold” rating. The average analyst price target for ECL is $277.78, indicating a 16.2% potential upside from the current levels.
