Food Safety Company Ecolab Remains Confident In Its Outlook: Here's Why

Ecolab Inc ECL reported third-quarter FY23 sales growth of 8% year-on-year to $3.958 billion, missing the analyst consensus estimate of $4.01 billion.

Sales from Global Industrial rose 4%, Global Institutional & Specialty climbed 12%, Global Healthcare & Life Sciences grew 11% Y/Y in fixed currency.

Adjusted EPS of $1.54 beat the consensus estimate of $1.52.

Selling, general and administrative expenses rose 17% Y/Y. Operating income increased 17% to $566 million, and the operating margin expanded 110 basis points to 14.3%.

The company held $1 billion in cash and equivalents as of September 30, 2023.

Outlook: Ecolab sees Q4 FY23 adjusted EPS of $1.48-$1.58 versus the consensus of $1.58.

Ecolab continues to expect mid-teens or better growth in adjusted EPS for FY24. 

Christophe Beck, Ecolab's chairman and CEO, said, "Ecolab's long-term fundamentals are stronger than ever, and we remain confident in our outlook. We expect strong growth in adjusted earnings in the fourth quarter, with this momentum continuing into 2024 as we work to deliver superior shareholder returns."

Price Action: ECL shares are trading higher by 2.44% at $163.04 on the last check Tuesday.