Can Global Industrial Unit Fuel Ecolab's (ECL) Q1 Earnings?

Ecolab Inc. (NYSE:ECL) is scheduled to report first-quarter 2019 results on Apr 30, before the opening bell. In the last reported quarter, the company’s earnings were in-line with the Zacks Consensus Estimate. Further, it has an average four-quarter positive surprise of 0.53%.

Let’s take a look at how things are shaping up prior to this announcement.

Which Way Are Q1 Estimates Treading?

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $3.57 billion, suggesting an improvement of 2.9% from the year-ago period. The same for earnings is at $1.02, indicating an increase of 12.1% from the year-ago reported figure.

Global Industrial Likely to Drive Q1

The expected upside in the Global Industrial segment is likely to come on the back of major gains from the Water, Food & Beverage and Life Sciences sub-units.

The Zacks Consensus Estimate for Global Industrial segment revenues is pegged at $1.29 billion, indicating an improvement of 4.7% from the year-ago quarter.

In fact, in March, the company unveiled a free online tool to help businesses globally in the process of improving water management. Such an enhancement is likely to contribute to the segment’s performance in the to-be-reported quarter.

Other Factors Impacting Q1

New business gains on the back of product innovation, sales and service expertise, accelerating pricing, and productivity and cost efficiencies are likely to drive overall performance in the to-be-reported quarter.

In fact, on the back of the aforementioned factors, the company is likely to deliver in both top and bottom-line growth in the to-be-reported quarter.

With respect to earnings, the company projects adjusted EPS to range between 98 cents and $1.06, suggesting growth of 8-16% from the year-ago reported figure. For revenues, the consensus mark is pegged at $3.57 billion, indicating an improvement of 2.9% from the year-ago quarter.

Additionally, the company expects higher underlying sales volume driven by estimated sales growth across Global Energy, Industrial and Institutional segments. In fact, the Zacks Consensus Estimate for Global Energy and Global Institutional sales is pegged at $874 million and $1.26 billion respectively, both suggesting growth of 3.2% from the prior-year quarter.

Solid international presence, driven by sustained robust performance in emerging markets, is expected to bolster overall results in the first quarter.

However, volatile forex might adversely impact results in the to-be-reported period, primarily owing to the company’s strong international presence.

What Our Quantitative Model Suggests

Per the proven Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ecolab has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revision.

Stocks Worth a Look

Here are some stocks worth considering from the same space as these have the right combination of elements to beat on earnings this time around.

W.R. Grace & Co. (NYSE:GRA) has an Earnings ESP of +0.85% and a Zacks Rank #2.

Ingevity Corporation (NYSE:NGVT) has an Earnings ESP of +6.77% and a Zacks Rank #3.

Venator Materials PLC (NYSE:VNTR) has an Earnings ESP of +80.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here .

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