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Ecolab (ECL) Beats Earnings and Revenue Estimates in Q2

Ecolab Inc. ECL reported second-quarter 2017 adjusted earnings (excluding special gains, charges and tax items) of $1.13 per share, which came above the Zacks Consensus Estimate of $1.12. Earnings improved from $1.08 reported in the year-ago quarter.

Adjusted quarterly net sales were $3.46 billion, up 4% from the year-ago period. Also, net sales came above the Zacks Consensus Estimate of $3.40 billion. The upside came from new business gains, better pricing, product innovation and cost efficiencies. This more than offset higher delivered product costs.

Quarter Details

Global Industrial segment’s sales grew 3% year over year to almost $1.21 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 4% due to higher delivered product costs.

Global Institutional segment sales increased 3% to $1.22 billion, led by strong growth in the Specialty and Healthcare business lines. Acquisition-adjusted fixed currency operating income increased 3% as pricing and sales volume gains more than offset innovation cum customer investments and higher delivered product costs.

Global Energy segment sales increased 5% to $792.4 million owing to strong growth in the well stimulation business and modest gains in the downstream business. Acquisition-adjusted fixed currency operating income decreased 4% due to higher delivered product costs and lower pricing.

Sales from the Other segment climbed 6% year over year to $215.3 million on account of strong growth in Pest Elimination business. Sales in this segment witnessed robust growth in North America. Fixed currency operating income fell 3% as pricing and sales volume gains were offset by higher field investments.

 

Ecolab Inc. Price, Consensus and EPS Surprise

 

Ecolab Inc. Price, Consensus and EPS Surprise | Ecolab Inc. Quote

Outlook

For the third quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of $1.36–$1.44, compared with $1.28 a year ago.

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation EW, CryoLife, Inc. CRY and Fresenius Medical Care Corporation FMS.  Fresenius Medical Care sports a Zacks Rank #1 (Strong Buy), while Edwards Lifesciences and CryoLife carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a one-year return of 2.3%.

CryoLife delivered a strong return of 35.8% over the last one year. The stock reported a positive earnings surprise of 20% in the previous quarter.

Fresenius Medical Care delivered an impressive return of 4.3% over the last one year. The company delivered a positive earnings surprise of 20.5% in the last reported quarter.

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Ecolab Inc. (ECL): Free Stock Analysis Report
 
Fresenius Medical Care Corporation (FMS): Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
 
CryoLife, Inc. (CRY): Free Stock Analysis Report
 
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