NYSE$ECL

Ecolab Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Ecolab's first quarter results were impacted by the Texas freeze, which caused supply chain and customer disruptions, but were in line with expectations due to underlying sequential sales and earnings improvements.

Ecolab's first quarter earnings were affected by the Texas freeze, which had an estimated unfavorable impact of $0.10 per share. Reported sales decreased by 4%, while adjusted diluted EPS from continuing operations was $0.81, a decrease of 18% compared to the previous year.

  • The Texas freeze had an estimated unfavorable impact of $0.10 per share in the first quarter.
  • Reported sales from continuing operations decreased by 4% compared to last year.
  • Adjusted diluted EPS from continuing operations was $0.81, a decrease of 18% compared to last year.
  • Strong growth in the Healthcare & Life Sciences segment was more than offset by a modest Industrial segment decrease and narrowed declines in the Institutional & Specialty and Other segments.

Headline financials

Total Revenue

$2.89B

Previous: $3.58B-19.4%
EPS (adj)

$0.81

Previous: $1.13-28.3%
Reported GAAP operating income margin

10.3%

Previous: 11.1%-7.2%
Capital Expenditures

-$102M

Previous: -$161M+36.5%
Free Cash Flow

$94.4M

Previous: $130M-27.1%
Net Income

$197M

Previous: $290M-32.3%
Operating Income

$297M

Previous: $397M-25.2%
Gross Profit

$1.17B

Previous: $1.46B-19.9%
Cash & Equivalents

$1.19B

Previous: $1.66B-28.4%
Total Assets

$18.2B

Previous: $22.3B-18.5%
Stock-Based Comp

$31.3M

Previous: $27.4M+14.2%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$2.89B

Q1 2021-19.4%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ecolab · $1.13B total across 2 segments · Q1 2021

  • Global Institutional & Specialty
    $857M-19.7%
  • Global Pest Elimination
    $271M-51.7%

Forward guidance

Ecolab anticipates significant growth in the second quarter, driven by the Institutional division's expansion and the recovery in the U.S. market, which will offset the slower recovery in Europe and emerging markets. The company expects robust consolidated gains in the second half, and continues to look for strong year-on-year growth for the full year 2021.

Tailwinds

  • Significant growth in the second quarter, primarily driven by strong year-on-year growth in our Institutional division
  • New business as well as improving trends in early-reopening U.S. states and continued U.S. vaccination progress
  • Robust consolidated gains in the second half
  • Strong year-on-year growth for the full year 2021
  • Earnings per share above 2019 earnings per share from continuing operations excluding the estimated $0.15 per share impact of the Texas freeze

Headwinds

  • Continued uncertain outlook regarding the timing and pace of global economic recovery from COVID-19’s impact does not yet present an adequate basis for us to provide either quarterly or annual earnings forecasts.
  • Europe and emerging market recovery is softer
  • The Texas freeze is expected to have an unfavorable impact of $0.15 per share in full year 2021
  • First quarter results reflected underlying sequential improvement from the fourth quarter offset by supply chain and customer disruptions from the Texas freeze.
  • Modest Industrial segment decrease and narrowed declines in the Institutional & Specialty and Other segments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+10.9%

Q4 2022

Best reaction

-12.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-3.1%-3.1%
Q4 2025+4.0%+3.8%-4.3%
Q3 2025-4.1%-8.3%-1.7%
Q2 2025+0.4%+2.9%+1.8%
Q1 2025+3.3%+6.8%+10.6%
Q4 2024+6.2%+7.6%+2.1%
Q3 2024-1.5%-4.6%-3.4%
Q2 2024-6.9%-4.3%+0.9%
Q1 2024+1.5%+2.6%+3.2%
Q4 2023+6.9%+1.7%-1.4%
Q3 2023+5.1%+9.8%+20.5%
Q2 2023+1.0%-0.3%+0.4%
Q1 2023+2.7%+2.9%+0.2%
Q4 2022+10.9%+9.8%+7.4%
Q3 2022-12.6%-14.2%-3.3%
Q2 2022-1.3%+1.5%+5.0%
Q1 2022-2.9%-3.6%-6.5%
Q4 2021-0.1%-2.3%-6.1%
Q3 2021-0.2%+0.3%+4.4%
Q2 2021-0.0%+0.8%+1.8%
Q1 2021-2.1%-1.2%-4.7%
Q4 2020-5.0%-5.4%-4.7%
Q3 2020-6.5%-7.4%+10.0%
Q2 2020-8.1%-11.8%-6.8%
Q1 2020+5.4%+1.3%+12.7%
Q4 2019+1.4%+0.1%-23.0%
Q3 2019+1.1%-0.3%-2.4%
Q2 2019+0.6%-0.3%+3.2%
Q1 2019-1.1%+0.3%-0.6%
Q4 2018+1.1%+2.2%+7.5%
Q3 2018+4.5%+5.5%+8.1%
Q2 2018+2.8%+4.5%+6.7%
Q1 2018-0.4%+0.4%-1.5%
Q4 2017-1.2%-0.5%+2.0%
Q3 2017+0.3%+0.4%+3.8%
Q2 2017+0.9%+0.9%+1.2%
Q1 2017-2.8%-2.2%+3.5%
Q4 2016-0.7%+1.3%+0.2%
Q3 2016-1.9%-3.1%+3.8%
Q2 2016+2.3%+3.4%+3.7%
Q1 2016+0.9%
Q4 2015-5.5%
Q3 2015-0.3%
Q2 2015+6.4%
Q1 2015-1.4%
Q4 2014+3.8%
Q3 2014-2.2%
Q2 2014-1.5%
Q1 2014-0.9%
Q4 2013+0.5%
Q3 2013+3.0%
Q2 2013+0.0%
Q1 2013+1.2%
Q4 2012+6.2%
Q3 2012+0.1%
Q2 2012-3.6%
Q1 2012+1.0%
Q4 2011-4.2%
Q3 2011-4.6%
Q2 2011-3.5%
Q1 2011+2.5%
Q4 2010+2.4%
Q3 2010+0.3%
Q2 2010-0.7%
Q1 2009-1.7%
Q1 2010+1.2%
Q4 2007+0.5%
Q4 2009+0.5%
Q3 2009+2.2%
Q3 2008+2.2%
Q2 2009+0.0%
Q2 2008+0.0%
Q4 2008+0.0%

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