Ecolab Matches 2Q Estimates, Shares Down
Ecolab (NYSE:ECL), a producer of sanitizers and food safety products, dropped nearly 3% after the bell on Tuesday, though it reported second-quarter earnings earlier in the day that matched analyst expectations.
The Minnesota-based company saw a 30% jump in net income, posting a $129 million second quarter profit, or 54 cents a share, up from $99.1 million, or 41 cents a share, in the year-earlier period.
Excluding special items, the company’s EPS matched average analyst expectations of 56 cents, according to a Thomson Reuters poll.
The company attributed its profit to strong sales growth in its Asian Pacific and Latin American regions along with favorable prices and measures to reduce costs.
Revenue was up 5% from the same quarter last year to $1.52 billion, narrowly beating the Street’s view of $1.51 billion.
Ecolab CEO Douglas M. Baker, Jr., said the company continues to make “good progress,” with performance driven by aggressive new accountant efforts and innovative new products.
“These, combined with our continued actions to reduce costs and to improve our efficiency, delivered the strong earnings performance,” he said, noting the company will look for continued sale and earnings growth for rest of the year.
“We think we have the right mix of opportunities, strategies and people to sustain superior growth this year and for many more in the future,” Baker said.