Ecolab Q2 Earnings Surpass Estimates, Margins Rise
Ecolab Inc. (NYSE: ECL) reported second-quarter 2024 adjusted earnings per share of $1.68, up 35.5% year over year. The bottom line exceeded the Zacks Consensus Estimate by 1.2%.
GAAP EPS for the quarter was $1.71, up 48.7% year over year.
Revenue Details
Revenues grossed $3.99 billion in the reported quarter, up 3.5% year over year. The metric missed the Zacks Consensus Estimate by 1.1%.
Ecolab’s organic sales increased 3.8% from the prior-year period’s level.
The year-over-year uptick in the second-quarter organic sales was driven by strong growth in the Institutional & Specialty and Pest Elimination segments and modest growth in the Industrial segment.
Segmental Analysis
Effective in the first quarter of 2024, Ecolab has modified its segment reporting, where Global Pest Elimination is now a standalone reportable segment. This is expected to provide improved transparency on this high-growth and high-margin business.
In May, Ecolab has reached a definitive agreement to sell its global surgical solutions business to Medline. The sale is expected to close in the second half of 2024, subject to regulatory clearances and other customary closing conditions. However, Ecolab will continue to serve hospitals through its infection prevention and instrument reprocessing businesses.
The Global Industrial segment’s fixed currency sales of $1.96 billion reflect 2.6% reported growth year over year. Organic sales increased 1.8% year over year, driven by accelerating Water sales growth. Water’s performance was led by strong growth in downstream and light water, where global high-tech continues to grow in double-digits.
Food & Beverage sales reflected good new business wins. Paper sales were stable compared to last year’s performance and continued to improve sequentially as good new business offset soft but stable customer demand.
The Global Institutional & Specialty arm’s fixed currency sales of $1.37 billion reflect reported growth of …
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