ECL Earnings Prediction
The chart below shows how ECL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ECL sees a -1.08% change in stock price 10 days leading up to the earnings, and a +2.33% change 10 days following the report. On the earnings day itself, the stock moves by +1.64%. This data can give you a slight idea of what to expect for the next quarter's release.
ECL Key Earning Data
ECL Earnings Analysis
Positive
Earnings Growth Performance: Strong double-digit earnings growth of 12% in EPS, reflecting the effectiveness of the company's operating model and team performance.
Organic Sales Growth: Organic sales growth of 3%, indicating solid demand and market share gains through the One Ecolab growth initiative.
Operating Income Margin Increase: Improved productivity led to a 190 basis point increase in operating income margin, moving towards the goal of a 20% margin by 2027.
New Business Wins: Record new business wins in the first quarter, demonstrating the strong value proposition and customer resonance of Ecolab's offerings.
Supply Chain Advantage: Robust and agile global supply chain provides a competitive advantage, allowing Ecolab to navigate challenges effectively.
Surcharge Impact on Sales Growth: Implementation of a 5% rate surcharge in the U.S. to mitigate the impact of tariffs, expected to benefit organic sales growth in the second quarter.
Life Sciences Growth Performance: Life Sciences segment grew organic sales mid single-digits with over 30% growth in operating income, indicating strong performance and future potential.
Pest Intelligence Deployment: Pest Elimination business rapidly deploying Pest Intelligence, enhancing service capabilities and expected to return to near 20% operating income margin soon.
Hi-Tech Water Sales Surge: Global Hi-Tech Water business sales growth accelerated to nearly 30%, leveraging innovation in water circularity and cooling solutions.
Digital Sales Growth: Ecolab Digital segment grew sales 12% to $80 million, with expectations for accelerated growth as digital offerings expand across the customer base.
Negative
Softening End Market Demand: End market demand has softened, particularly in heavy industrial markets, indicating potential challenges ahead.
Tariff Impact on Costs: The company anticipates a few hundred million dollars in annualized impact from tariffs and increased local supplier costs due to higher on-shoring demand.
U.S. Customer Surcharge Announcement: A 5% rate surcharge for all customers in the U.S. was announced to mitigate tariff impacts, which may not be well-received by all customers.
Growth Investments Impact Margins: Despite strong performance in some segments, the investments in growth engines are impacting near-term operating income margins.
Organic Sales Growth Outlook: The company expects organic sales growth in the second quarter to be similar to or slightly better than the first quarter, indicating a lack of significant improvement in demand.
Global Operating Environment Risks: The complexity of the global operating environment is increasing, which may pose risks to future performance.
ECL FAQs
How does ECL typically perform around its earnings report dates?
ECL's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.08% change leading up to the report and a +2.33% change in the 10 days following the release.
Is Ecolab Inc (ECL) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ECL Earning Call Sentiment
Ecolab, Inc. (ECL) Q1 2025 Earnings Conference Call Transcript
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