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Ecolab's Third Quarter Earnings Report
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ECL
Ecolab (NYSE:ECL) announced its results for the third quarter on October 30, 2012. Ecolab develops and markets cleaning and sanitizing products and programs, pest elimination, maintenance, and repair services for the hospitality, foodservice, healthcare and industrial markets.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: Ecolab's EPS fell in line with analyst expectations of 87 cents per share while revenue of $3.02 billion beat estimates of $2.72 billion. Revenue climbed 74.1% from the same period last year. Ecolab has averaged revenue growth of 52.3% over the past five quarters. Net income for the third quarter was $238 million. This is 54.2% higher than the year-ago quarter.
Management Quote: Commenting on the quarter, Douglas M. Baker, Jr., Ecolab's Chairman and Chief Executive Officer said, "We continued to show strong results in the third quarter despite the challenging global economies. Growth remained solid across our businesses and regions, reflecting our focused efforts on new account gains, new products and services to yield improved results and lower costs for customers, and achieving the planned integration and synergy objectives from our combined businesses."We expect to deliver a strong year in 2012, and in doing so, help set up growth for the future. The integration of Ecolab and Nalco is going very well, and based on our experience with customers, we are more confident than ever in the value we will create through our merger. Our other recent acquisitions are also performing well and are ahead of plans. And our recently announced agreement to acquire Champion Technologies will further strengthen our strategic position, earnings and long-term outlook."We remain focused on our opportunities and the effective execution of our business approach. Our value proposition for customers remains compelling - delivering improved results at lower total costs - and we are using this winning combination to secure new business. We are in a very favorable situation - we are positioned to capitalize on excellent long-term growth opportunities, we have great technology, we have great sales-and-service teams and we have a great business model. We are committed to driving our business and delivering excellent results for our customers and shareholders in 2012 and beyond."
A Look Back: Net income has increased 2% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 54.2% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the fourth quarter has risen to 90 cents per share from 88 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. The average estimate for the fiscal year is $2.99 per share, down from $3 90 days ago.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: Ecolab's EPS fell in line with analyst expectations of 87 cents per share while revenue of $3.02 billion beat estimates of $2.72 billion. Revenue climbed 74.1% from the same period last year. Ecolab has averaged revenue growth of 52.3% over the past five quarters. Net income for the third quarter was $238 million. This is 54.2% higher than the year-ago quarter.
Management Quote: Commenting on the quarter, Douglas M. Baker, Jr., Ecolab's Chairman and Chief Executive Officer said, "We continued to show strong results in the third quarter despite the challenging global economies. Growth remained solid across our businesses and regions, reflecting our focused efforts on new account gains, new products and services to yield improved results and lower costs for customers, and achieving the planned integration and synergy objectives from our combined businesses."We expect to deliver a strong year in 2012, and in doing so, help set up growth for the future. The integration of Ecolab and Nalco is going very well, and based on our experience with customers, we are more confident than ever in the value we will create through our merger. Our other recent acquisitions are also performing well and are ahead of plans. And our recently announced agreement to acquire Champion Technologies will further strengthen our strategic position, earnings and long-term outlook."We remain focused on our opportunities and the effective execution of our business approach. Our value proposition for customers remains compelling - delivering improved results at lower total costs - and we are using this winning combination to secure new business. We are in a very favorable situation - we are positioned to capitalize on excellent long-term growth opportunities, we have great technology, we have great sales-and-service teams and we have a great business model. We are committed to driving our business and delivering excellent results for our customers and shareholders in 2012 and beyond."
A Look Back: Net income has increased 2% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 54.2% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter performance are higher than they were 90 days ago. Over the past three months, the average estimate for the fourth quarter has risen to 90 cents per share from 88 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. The average estimate for the fiscal year is $2.99 per share, down from $3 90 days ago.
by
Investopedia Staff
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