Ecolab Inc (ECL) posted better-than-expected Q2 results, driven by recovering markets and new business wins. The company develops and offers services, technology, and systems that specialize in water treatment, purification, cleaning, and hygiene.
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Ecolab reported Q2 adjusted earnings of $1.22 per share, up 88% year-over-year, and inched past the Street’s estimate of $1.21 per share.
Net sales surged 18% year-over-year to $3.16 billion, topping analysts’ expectations of $3.1 billion. Fixed currency sales jumped 13%, while acquisition-adjusted fixed currency sales growth was 12%. (See Ecolab stock charts on TipRanks)
The company’s Global Industrial and Global Institutional & Specialty segments performed well, partially mitigated by the quarterly performance of the Global Healthcare & Life Sciences unit.
Ecolab CEO Christophe Beck said, “We continue to expect a strong performance in 2021. We expect the U.S. recovery to continue, Europe to reopen as forecasted and the rest of the world to follow soon after.”
A couple of months back, Oppenheimer analyst Scott Schneeberger reiterated a Hold rating on the stock.
Overall, the stock has a Hold consensus rating based on 5 Holds versus 1 Buy. The average Ecolab price target of $229.60 implies 4% upside potential to current levels. Shares have jumped 14% over the past year.
According to TipRanks’ Smart Score system, Ecolab gets a 4 out of 10, which indicates that the stock is likely to perform in line with market averages.
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