NYSE$ECL

Ecolab Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ecolab's third quarter earnings significantly improved from the second quarter, reflecting the divergent impacts of COVID-19 on the business segments.

Ecolab's third quarter results showed significant improvement from the second quarter, while still reflecting the divergent impacts of COVID-19 on the business segments. Strong top and bottom line growth in the Healthcare & Life Sciences segment and further strong income growth in the Industrial segment were more than offset by significant declines in the Institutional & Specialty and Other segments.

  • Third quarter results showed significant improvement from the second quarter, while still reflecting the divergent impacts from COVID-19 on the business segments.
  • Reported sales from continuing operations decreased 6% from the year-ago period.
  • Reported diluted EPS from continuing operations was $0.85, a 43% decrease versus last year.
  • Adjusted diluted EPS from continuing operations were $1.15, a 24% decrease from the comparable period last year.

Headline financials

Total Revenue

$3.02B

Previous: $3.82B-20.9%
EPS (adj)

$1.15

Previous: $1.71-32.7%
Reported GAAP operating income margin

13.6%

No prior period
Capital Expenditures

-$362M

Previous: -$550M+34.2%
Free Cash Flow

-$113M

Previous: -$81.1M-39.3%
Net Income

$249M

Previous: $469M-46.9%
Operating Income

$411M

Previous: $588M-30.0%
Gross Profit

$1.25B

Previous: $1.61B-22.4%
Cash & Equivalents

$1.03B

Previous: $136M+661.4%
Total Assets

$18.1B

Previous: $20.8B-13.1%
Stock-Based Comp

$11.4M

Previous: $13.7M-16.8%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.02B

Q3 2020-20.9%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ecolab · $1.18B total across 2 segments · Q3 2020

  • Global Institutional & Specialty
    $896M
  • Global Pest Elimination
    $284M

Forward guidance

The continued uncertain outlook regarding the full extent of COVID-19’s impact on the global economy and its longevity do not yet provide an adequate basis for us to provide either quarterly or annual earnings forecasts.

Tailwinds

  • We expect full year 2020 Healthcare & Life Sciences segment sales to show strong growth over the prior year
  • We expect modest pressure on our Industrial segment business sales
  • We expect lessening pressure on results for our Institutional & Specialty and Other segments
  • We expect sequential improvement from third quarter levels
  • We expect our product and service innovation, investments in new hygiene and digital technologies, and successful sales and profit initiatives to augment a continuing recovery in customer activity.

Headwinds

  • The continued uncertain outlook regarding the full extent of COVID-19’s impact on the global economy and its longevity do not yet provide an adequate basis for us to provide either quarterly or annual earnings forecasts.
  • COVID-19 impact on restaurant, hospitality and entertainment to result in a significant decline for the Institutional division sales within the Institutional & Specialty segment for the full year.

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 Q3 2020

Historical avgQ3 2020

+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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