The Ecolab Inc. (NYSE:ECL) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Ecolab Inc. (NYSE:ECL) filed its quarterly result this time last week. The early response was not positive, with shares down 6.5% to US$257 in the past week. Ecolab reported in line with analyst predictions, delivering revenues of US$4.2b and statutory earnings per share of US$2.05, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ecolab after the latest results.

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After the latest results, the 22 analysts covering Ecolab are now predicting revenues of US$16.9b in 2026. If met, this would reflect a credible 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to US$8.35. Before this earnings report, the analysts had been forecasting revenues of US$16.9b and earnings per share (EPS) of US$8.39 in 2026. 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

There were no changes to revenue or earnings estimates or the price target of US$290, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ecolab, with the most bullish analyst valuing it at US$325 and the most bearish at US$245 per share. This is a very narrow spread of estimates, implying either that Ecolab is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Ecolab's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2026 being well below the historical 6.8% p.a. growth over the last five years. Compare this to the 124 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Ecolab. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Ecolab going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Ecolab that you need to be mindful of.

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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.