NYSE$ECL

Ecolab Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Ecolab delivered very strong operating performance, with sales and earnings exceeding expectations. The company continues to expect further performance improvement through 2023.

Ecolab reported a strong first quarter with organic sales growth of 13% and adjusted EPS of $0.88, a 7% increase year-over-year. The company's performance was driven by double-digit growth in key segments and improved operating income margin.

  • Reported sales reached $3.6 billion, a 9% increase compared to the previous year, with organic sales growing by 13%.
  • Operating income increased by 38%, with organic operating income growth accelerating to 19%.
  • The organic operating income margin expanded by 50 bps year-over-year to 10.6%, driven by modest gross margin expansion and improved productivity.
  • Reported diluted EPS increased by 37% to $0.82, while adjusted diluted EPS rose by 7% to $0.88.

Headline financials

Total Revenue

$3.57B

Previous: $3.27B+9.3%
EPS (adj)

$0.88

Previous: $0.82+7.3%
Reported GAAP operating income margin

9.8%

No prior period
Capital Expenditures

-$174M

Previous: -$149M-16.8%
Free Cash Flow

$59.7M

Previous: $23.2M+157.3%
Net Income

$233M

Previous: $172M+35.8%
Operating Income

$352M

Previous: $255M+38.2%
Gross Profit

$1.37B

Previous: $1.19B+14.5%
Cash & Equivalents

$419M

Previous: $99.4M+321.9%
Total Assets

$21.3B

Previous: $21.1B+0.9%
Stock-Based Comp

$31.4M

Previous: $28.2M+11.3%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.57B

Q1 2023+9.3%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Ecolab · $1.46B total across 2 segments · Q1 2023

  • Global Institutional & Specialty
    $1.13B+12.1%
  • Global Pest Elimination
    $330M+11.3%

Forward guidance

Ecolab expects to deliver quarterly adjusted earnings per share growth that accelerates towards its low double-digit historical performance. For the second quarter of 2023, the company expects adjusted diluted earnings per share in the $1.15 to $1.25 range.

Tailwinds

  • Continued robust sales growth
  • Easing delivered product cost inflation
  • Improved productivity
  • Strong organic sales gains
  • Double-digit growth in organic operating income

Headwinds

  • Challenging macro environment
  • High delivered product costs
  • Easing demand
  • Higher interest expense
  • Currency translation

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 2023

Historical avgQ1 2023

+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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