Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Ecolab (ECL) , which belongs to the Zacks Chemical - Specialty industry, could be a great candidate to consider. This cleaning, food-safety and pest-control services company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 0. ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - Ecolab (ECL) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - Ecolab has a favorable Growth Score and a top Zacks Rank, indicating strong growth potential [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [3] - Ecolab's projected EPS growth for this year is 27.7%, significantly higher than the industry average of 9.5% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Ecolab's year-over-year cash flow growth is 8.6%, outperforming the industry average of -5.7% [5] - The company's historical annualized cash flow growth rate over the past 3-5 years is 1.3%, slightly above the industry average of 1.1% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [7] - Ecolab's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [7] Group 5: Investment Positioning - Ecolab has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [8]

Ecolab (ECL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since a chang ...

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Core Points - Ecolab will receive the 2024 ELC Corporate Award for its commitment to diversity, equity, and inclusion initiatives [2][4][5] - The award will be presented during The ELC Recognition Gala on October 3, 2024, in Washington, D.C. [2][3] - Ecolab has been recognized for embedding DEI into all aspects of its business, including talent attraction and supplier relationships [4][5] Company Overview - Ecolab is a global leader in sustainability, providing water, hygiene, and infection prevention solutions with annual sales of $15 billion [9] - The company employs over 46,000 associates and operates in more than 170 countries [9] - Ecolab's innovative solutions enhance operational efficiencies and sustainability across various sectors, including food, healthcare, and industrial markets [10] Recognition and Impact - Ecolab has received multiple accolades for its DEI efforts, including being named a Top 50 Company for Diversity by Fair360 and an "Equality 100 Award" recipient for 11 consecutive years [6] - The company aims to increase management-level gender and ethnic/racial diversity to reflect local labor forces by 2030 [5] - Ecolab's leadership emphasizes that business success is linked to diversity, equity, and inclusion [7]

It has been about a month since the last earnings report for Ecolab (ECL) . Shares have added about 8.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Ecolab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Ecolab Q2 Earnings Surpass Estimates, Margins Rise Ecol ...

Ecolab Inc. (ECL) has been gaining from its solid product portfolio. The optimism, led by a solid secondquarter 2024 performance, along with its focus on research and development, is expected to contribute further. However, concerns arising from stiff competition persist. This Zacks Rank #3 (Hold) stock has rallied 19.6% year to date against the industry's 20.9% decline. The S&P 500 Composite has increased 12.2% during the same time frame. The renowned water, hygiene and infection prevention solutions and s ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the hel ...

Ecolab Inc. (ECL) has completed the sale of its global surgical solutions business to Medline for approximately $950 million in cash. Medline had announced a definitive agreement to acquire Ecolab's global surgical solutions business, including the Microtek product lines, on Apr 30, 2024. Following the sale, Ecolab will continue serving hospitals through its infection prevention and instrument reprocessing businesses, which provide environmental hygiene programs and cleaning and sterilization solutions for ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Ecolab's Q2 2024 unaudited consolidated financial statements detail income growth, balance sheet changes, and improved cash flow [Consolidated Statements of Income](index=2&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Ecolab reported strong Q2 2024 performance with significant increases in net sales, operating income, and diluted EPS Consolidated Income Statement Highlights (unaudited) | (in millions, except per share amounts) | Q2 2024 | Q2 2023 | % Change | H1 2024 | H1 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $3,985.8 | $3,852.1 | 3.5% | $7,737.7 | $7,423.7 | 4.2% | | **Operating income** | $656.9 | $484.7 | 35.5% | $1,174.8 | $836.3 | 40.5% | | **Net income attributable to Ecolab** | $490.9 | $329.7 | 48.9% | $903.0 | $563.1 | 60.4% | | **Diluted EPS** | $1.71 | $1.15 | 48.7% | $3.14 | $1.97 | 59.4% | [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Ecolab's balance sheet as of June 30, 2024, shows decreased total debt, assets held for sale, and increased equity Consolidated Balance Sheet Highlights (unaudited) | (in millions) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $5,752.3 | $5,644.1 | | Assets held for sale | $565.6 | $- | | **Total assets** | $21,461.8 | $21,846.6 | | **Total current liabilities** | $3,847.6 | $4,345.8 | | Long-term debt | $7,538.8 | $7,551.4 | | **Total liabilities** | $13,153.9 | $13,774.4 | | **Total equity** | $8,307.9 | $8,072.2 | [Consolidated Statements of Cash Flows](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash provided by operating activities significantly increased in H1 2024, while financing activities used more cash Cash Flow Summary for Six Months Ended June 30 (unaudited) | (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $1,260.5 | $771.6 | | **Cash used for investing activities** | ($445.4) | ($463.5) | | **Cash used for financing activities** | ($1,335.7) | ($322.2) | | **Decrease in cash and cash equivalents** | ($529.5) | ($44.4) | [Condensed Notes to Consolidated Financial Statements](index=6&type=section&id=CONDENSED%20NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail the surgical solutions business sale, new restructuring, debt, and legal contingencies - On April **27**, **2024**, the company agreed to sell its global surgical solutions business for **$950 million** in cash. The assets (**$565.6M**) and liabilities (**$62.5M**) of this business are now classified as held for sale[13](index=13&type=chunk)[14](index=14&type=chunk) - The company announced a new restructuring plan, "One Ecolab," on July **30**, **2024**, with anticipated costs of **$175 million** and special charges of **$50 million** by the end of **2027**[18](index=18&type=chunk) - Annual goodwill impairment assessment was completed in Q2 **2024** with no impairment found for any of the eight reporting units[40](index=40&type=chunk) - Effective January **1**, **2024**, the company reorganized its segments. The former Textile Care and CTG segments are now part of the Water operating segment within Global Industrial. The Pest Elimination segment is now a stand-alone reportable segment[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2024 performance, highlighting increased sales and operating income across all segments [Overview of the Second Quarter Ended June 30, 2024](index=30&type=section&id=OVERVIEW%20OF%20THE%20SECOND%20QUARTER%20ENDED%20JUNE%2030%2C%202024) Ecolab delivered strong Q2 2024 results with increased net sales, operating income, and diluted EPS across all segments Q2 2024 Key Performance Metrics (vs. Q2 2023) | Metric | Result | % Change | | :--- | :--- | :--- | | Reported Net Sales | $3,985.8M | +3% | | Organic Sales | - | +4% | | Reported Operating Income | $656.9M | +36% | | Organic Operating Income | - | +32% | | Reported Diluted EPS | $1.71 | +49% | | Adjusted Diluted EPS | $1.68 | +35% | - Organic sales growth by segment: Global Industrial **+2%**, Global Institutional & Specialty **+7%**, Global Healthcare & Life Sciences stable, and Global Pest Elimination **+9%**[101](index=101&type=chunk) [Results of Operations](index=31&type=section&id=RESULTS%20OF%20OPERATIONS) Q2 2024 organic sales grew 4% driven by pricing, with adjusted gross margin expanding due to lower supply chain costs Q2 2024 vs Q2 2023 Sales Change Components | Component | Percentage Change | | :--- | :--- | | Volume | 1% | | Pricing | 3% | | **Organic sales change** | **4%** | | Acquisitions and divestitures | 1% | | **Fixed currency sales change** | **4%** | | Foreign currency translation | (1)% | | **Reported GAAP net sales change** | **3%** | - Adjusted gross margin increased to **43.8%** in Q2 **2024** from **39.6%** in Q2 **2023**, reflecting lower supply chain costs and strong pricing[106](index=106&type=chunk) - A new restructuring initiative, "One Ecolab," was announced on July **30**, **2024**, with expected total program savings of approximately **$140 million** by **2027**[114](index=114&type=chunk) [Segment Performance](index=36&type=section&id=SEGMENT%20PERFORMANCE) All segments showed organic sales growth in Q2 2024, with expanded operating income margins across the board Q2 2024 Organic Sales and Operating Income Change by Segment | Reportable Segment | Organic Sales Change | Organic Operating Income Change | Organic Operating Income Margin Change (ppt) | | :--- | :--- | :--- | :--- | | Global Industrial | 2% | 18% | +2.2 | | Global Institutional & Specialty | 7% | 50% | +6.7 | | Global Healthcare & Life Sciences | 0% | 2% | +0.1 | | Global Pest Elimination | 9% | 20% | +1.9 | [Financial Position, Cash Flows and Liquidity](index=42&type=section&id=FINANCIAL%20POSITION%2C%20CASH%20FLOWS%20AND%20LIQUIDITY) Ecolab's financial position strengthened with reduced debt, improved net debt to EBITDA, and robust operating cash flow Net Debt to EBITDA Ratio | (in millions, except ratio) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total debt | $7,544.7 | $8,181.8 | | Less: Cash | $384.0 | $919.5 | | **Net debt** | **$7,160.7** | **$7,262.3** | | **EBITDA (trailing 12 months)** | **$3,318.1** | **$2,975.8** | | **Net debt to EBITDA** | **2.2** | **2.4** | - Cash from operating activities increased by **$489 million** in H1 **2024** compared to H1 **2023**, driven by a **$339 million** increase in net income and a **$174 million** favorable change in working capital[149](index=149&type=chunk) - In H1 **2024**, the company repaid **$630 million** of long-term debt and reacquired **$519 million** of its common stock[152](index=152&type=chunk) [Subsequent Events](index=44&type=section&id=SUBSEQUENT%20EVENTS) Post-Q2, Ecolab commenced a new restructuring plan and completed the sale of its global surgical solutions business - The sale of the global surgical solutions business was completed on August **1**, **2024**[156](index=156&type=chunk) - A new restructuring plan was formally commenced after Q2 to leverage technology and AI through global centers of excellence[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Ecolab uses derivatives like foreign currency and interest rate swaps to manage market risks, not for speculation - The company uses derivatives such as foreign currency forward contracts and interest rate swaps to manage market risks and does not engage in speculative trading[162](index=162&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with an ongoing multi-year ERP system upgrade - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June **30**, **2024**[163](index=163&type=chunk) - The company is in the process of a multi-year ERP system upgrade, which will affect internal controls over financial reporting[163](index=163&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Ecolab is involved in TPC Group Litigation, believing claims are without merit and covered by insurance - The company is involved in multi-district litigation (TPC Group Litigation) related to a **2019** plant explosion at a customer's site. The company believes the claims are without merit and are covered by insurance[89](index=89&type=chunk)[165](index=165&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Form 10-K filing - No material changes to risk factors were reported since the last Form **10-K** filing[166](index=166&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Ecolab repurchased **1.36 million** shares in Q2 2024, with over **10 million** shares remaining for repurchase Share Repurchases in Q2 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | 725,049 | $225.22 | | May 2024 | 529,649 | $230.99 | | June 2024 | 108,867 | $236.19 | | **Total Q2** | **1,363,565** | **$228.34** | - As of June **30**, **2024**, **10,720,395** shares may yet be purchased under the company's repurchase authorizations[166](index=166&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications - Exhibits filed include CEO/CFO certifications and XBRL data[169](index=169&type=chunk)