Wednesday, 28 February 2024


Ecolab Q4 Earnings Edge Past Estimates, Shares Surge 4% By

Allbirds Shares Plummet 14% on Weak Guidance, While Q2 Results Beat Estimates

© Reuters.

ST. PAUL – Ecolab Inc . (NYSE:) has reported a fourth-quarter adjusted earnings per share (EPS) of $1.55, marginally surpassing the analyst consensus of $1.54. The company’s revenue for the quarter stood at $3.9 billion, slightly below the anticipated $3.94 billion. Despite this, shares of Ecolab soared by 4% as the company’s performance and optimistic guidance resonated positively with investors.

The company’s reported sales saw a 7% increase compared to the same quarter last year, with organic sales growing by 6%. This was attributed to strong performance in the Institutional & Specialty segment and Pest Elimination, as well as solid growth in the Industrial segment. Ecolab’s operating income leaped by 48%, with organic operating income up by 21%, driven by robust pricing strategies, volume growth, and moderately lower delivered product costs. The reported operating income margin reached 15.0%, while the organic operating income margin hit 16.0%, a 200 basis points improvement, reflecting significant gross margin expansion.

Ecolab’s chairman and CEO, Christophe Beck, commented on the results, stating, “2023 was a phenomenal year for Ecolab, with our team delivering robust sales growth, significant operating margin expansion and very strong growth in adjusted diluted earnings per share.” Beck attributed the success to a combination of new business wins, breakthrough technology launches, and improved productivity through digital capabilities.

Looking ahead, Ecolab provided guidance for the first quarter of 2024, forecasting adjusted diluted EPS in the range of $1.27 to $1.37, which represents a significant increase of 44% to 56% compared to the previous year. This guidance comfortably exceeds the analyst consensus of $1.13. For the full year 2024, the company expects adjusted diluted EPS to be in the range of $6.10 to $6.50, marking a 17% to 25% increase from the prior year, and aligning closely with the consensus of $6.12.

Ecolab’s forward-looking statements suggest another year of strong performance, with Beck expressing confidence in the company’s growth trajectory and margin expansion goals. The company’s strategic approach, including its enterprise selling model and value proposition aimed at improving customer operational performance while reducing water and energy consumption, positions Ecolab to potentially deliver superior earnings growth and long-term returns for shareholders.

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