Earnings Preview: Ecolab EPS, Revenue Expected to Rise from Previous Quarter

Ecolab ECL unveils its next round of earnings this Wednesday, July 27, 2011. Here's Benzinga's essential guide to Ecolab's second quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 63 cents per share and revenues of $1.65 billion. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of 56 cents per share on revenues of $1.52 billion. We'll have to wait for Wednesday to see if Ecolab reports a rise in EPS and revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Ecolab were trading at $53.20 as of July 21, 2011. Shares are up 6.2% year to date. For a full 12 months, the return has risen by 3.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Ecolab is a Moderate Buy. This rating has remained steady over the past ninety days.

Competitors:

Want to check out the performance of Ecolab closest competitors? Take a look at some of the company's peers in the materials sector.

• Clorox Company CLX: Hold with a $1.05 recent quarter EPS
• Rollins ROL: Hold with a $0.13 recent quarter EPS
• Zep ZEP: Moderate Buy with a $0.32 recent quarter EPS

The chemical-specialty company's industry has seen price/earnings growth of 1.6% during the current fiscal year.

Finally, a description of the company's main areas of operation: Ecolab Inc. develops and markets cleaning and sanitizing products and programs, pest elimination, maintenance and repair services for the hospitality, foodservice, healthcare and industrial markets.

Take Action:

Now that you've gotten an advanced peak at Ecolab's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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