Ecolab (ECL) Q1 Earnings Miss Estimates, Revenues In Line

Ecolab Inc. (NYSE:ECL) reported first-quarter 2017 adjusted earnings (excluding special gains, charges and tax items) of 80 cents per share, which missed the Zacks Consensus Estimate of 81 cents. However, earnings improved from 77 cents reported in the year-ago quarter.

Adjusted net sales were $3.16 billion, up 2% from the year-ago quarter. Also, net sales came in line with the Zacks Consensus Estimate.

Stock Performance

The price performance of the stock was favorable in the last three months. Ecolab registered a return of 7.04%, outperforming the Zacks classified Chemical-Specialty sub-industry’s gain of almost 5.65%.

Quarter Details

Global Industrial segment’s sales grew 3% year over year to almost $1.13 billion at fixed currency. This was driven by major gains in Paper, with modest increases in Food & Beverage and Water. North America and Latin America led the Global Industrial regional growth. Acquisition adjusted fixed currency operating income decreased 3% due to higher delivered product costs.

Global Institutional segment sales increased 3% to $1.08 billion, led by strong growth in the Specialty and Healthcare business lines. Acquisition adjusted fixed currency operating income decreased 2% owing to rising innovation and customer investments and higher delivered product costs.

Global Energy segment sales decreased 2% to $757 million owing to lackluster performance in production business. Acquisition-adjusted fixed currency operating income increased 21% due to cost reduction initiatives.

Sales from the Other segment climbed 5% year over year to $196.8 million on account of strong growth in Pest Elimination business. Sales for the segment saw robust growth in North America. Fixed currency operating income rose 1% due to pricing and sales volume gains.

Outlook

For the second quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of $1.08 to $1.15, compared with adjusted diluted earnings per share of $1.08 a year ago.

Zacks Rank & Stocks to Consider

Currently, Ecolab carries a Zacks Rank #3 (Hold).

Better-ranked medical stocks are Neovasc Inc. (NASDAQ:NVCN) , Hologic, Inc. (NASDAQ:HOLX) and Sunshine Heart Inc (NASDAQ:SSH) . Notably, each of these stocks sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.

Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.

Neovasc saw a stellar gain of 14% over the last three months. The stock has projected sales growth of 102.88% for the current year.

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