NYSE$ECL

Ecolab Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Ecolab's third quarter performance was marked by double-digit sales growth and accelerating pricing, which were offset by unfavorable currency translation and higher interest expense.

Ecolab reported strong sales growth in the third quarter, driven by pricing actions and new business wins, but earnings were negatively impacted by currency translation and increased interest expenses. The company is implementing cost savings measures in Europe to mitigate the effects of the war in Ukraine and the energy crisis.

  • Reported sales increased by 10% to $3.7 billion, with acquisition adjusted fixed currency sales up 13%.
  • Total pricing accelerated to +12%, exceeding delivered product costs.
  • Reported operating income increased by 4%, while acquisition adjusted fixed currency operating income grew by 3%.
  • Reported diluted EPS was $1.21, an 8% increase, while adjusted diluted EPS was $1.30, a 6% decrease.

Headline financials

Total Revenue

$3.67B

Previous: $3.32B+10.5%
EPS (adj)

$1.30

Previous: $1.38-5.8%
Reported GAAP operating income margin

13.2%

No prior period
Capital Expenditures

-$510M

Previous: -$424M-20.3%
Free Cash Flow

-$163M

Previous: -$95.2M-71.1%
Net Income

$347M

Previous: $329M+5.6%
Operating Income

$483M

Previous: $466M+3.7%
Gross Profit

$1.38B

Previous: $1.3B+5.6%
Cash & Equivalents

$113M

Previous: $898M-87.4%
Total Assets

$21B

Previous: $17.9B+17.4%
Stock-Based Comp

$14.4M

Previous: $13.6M+5.9%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.67B

Q3 2022+10.5%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Ecolab · $1.52B total across 2 segments · Q3 2022

  • Global Institutional & Specialty
    $1.16B+8.6%
  • Global Pest Elimination
    $352M+8.7%

Forward guidance

Ecolab expects continued strong acceleration in fourth quarter 2022 operating income growth, which is expected to be offset by unfavorable currency translation impacts of $0.11 per share and higher interest expense, resulting in fourth quarter adjusted diluted earnings per share approaching last year’s $1.28.

Tailwinds

  • Continued strong acceleration in fourth quarter 2022 operating income growth
  • Strong business momentum
  • Accelerating pricing
  • Further productivity gains
  • Leading value proposition operating in a $152 billion global market

Headwinds

  • More challenging macroeconomic environment, especially in Europe
  • High delivered product costs
  • Unfavorable currency translation impacts that are expected to persist well into 2023
  • War and energy crisis are having an increased short-term impact on demand and costs
  • Unfavorable currency translation impacts of $0.11 per share

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 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro