Ecolab Inc. (NYSE:ECL) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Ecolab Inc. (NYSE:ECL) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to US$262 in the week after its latest quarterly results. It was a credible result overall, with revenues of US$4.0b and statutory earnings per share of US$1.84 both in line with analyst estimates, showing that Ecolab is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Ecolab's 20 analysts currently expect revenues in 2025 to be US$16.0b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 3.2% to US$7.29 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$16.0b and earnings per share (EPS) of US$7.32 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Ecolab

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$283. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ecolab at US$315 per share, while the most bearish prices it at US$230. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Ecolab's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 6.9% p.a. growth over the last five years. Compare this to the 126 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while Ecolab's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$283, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ecolab going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Ecolab that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.