NYSE$ECL

Ecolab Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Ecolab's first quarter earnings reflected sales growth, driven by Institutional & Specialty, Industrial and Other segment sales, which overcame delivered product cost inflation and currency translation.

Ecolab's first quarter earnings were consistent with expectations, with sales growth driven by volume gains and pricing that overcame surging delivered product cost inflation. Sales growth accelerated from the fourth quarter, led by double-digit gains in Institutional & Specialty, Industrial and Other segments. Raw material and freight costs increased an estimated 25% versus last year, exacerbated by the start of the war in Eastern Europe.

  • Very strong first quarter sales growth, driven by strong volume gains and accelerating pricing.
  • Reported sales increased 13% versus last year.
  • Reported diluted EPS was $0.60, a decrease of 10% versus last year.
  • Adjusted diluted EPS was $0.82, an increase of 1% versus last year.

Headline financials

Total Revenue

$3.27B

Previous: $2.89B+13.2%
EPS (adj)

$0.82

Previous: $0.81+1.2%
Capital Expenditures

-$149M

Previous: -$102M-45.6%
Free Cash Flow

$23.2M

Previous: $94.4M-75.4%
Net Income

$172M

Previous: $197M-12.5%
Operating Income

$255M

Previous: $297M-14.4%
Gross Profit

$1.19B

Previous: $1.17B+1.7%
Cash & Equivalents

$99.4M

Previous: $1.19B-91.6%
Total Assets

$21.1B

Previous: $18.2B+15.7%
Stock-Based Comp

$28.2M

Previous: $31.3M-9.9%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.27B

Q1 2022+13.2%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Ecolab · $1.3B total across 2 segments · Q1 2022

  • Global Institutional & Specialty
    $1.01B+17.4%
  • Global Pest Elimination
    $296M+9.5%

Forward guidance

The company expects combined pricing actions, along with strong volume growth and long-term productivity improvements, to yield second quarter adjusted diluted earnings per share approaching last year’s $1.22. They believe current pricing actions will result in accelerating earnings growth through the second half and deliver low-teens growth in adjusted diluted earnings per share for the full year 2022.

Tailwinds

  • Focused on driving strong new business gains.
  • Focused on driving pricing.
  • Focused on driving margin improvement.
  • Leveraging innovation.
  • Leveraging productivity.

Headwinds

  • Expect the impact of substantial raw material and cost inflation to increase further in the second quarter.
  • Expect the impact of substantial raw material and cost inflation to remain high for the balance of the year.
  • Rapid rise in energy costs following the start of the war in Eastern Europe.
  • Uncertainty in the timing of the realization of the surcharge.
  • Substantial cost headwinds.

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 2022

Historical avgQ1 2022

+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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