Editor’s Note: Article was updated to correct a typo around the company’s pest elimination segment.
Ecolab Inc (NYSE:ECL) shares are trading lower after the company reported third-quarter sales growth of 1% year-on-year to $3.999 billion, missing the consensus estimate of $4.04 billion.
Organic sales grew 4%, led by strong performance across the business. Volume increased by 2%, fueled by successful new business wins and breakthrough innovations.
In fixed currency, Global Industrial sales grew 3% to $1.993 billion, Global Institutional & Specialty climbed 7% to $1.404 billion, Global Healthcare & Life Sciences fell 18% to $334.1 million and Global Pest Elimination increased 9% to $308.7 million.
Selling, general and administrative expenses remained flat year-on-year at $1.0 billion.
Adjusted operating income for the quarter increased 17% to $713.1 million, with an adjusted operating margin of 17.9% vs. 15.4% a year ago.
Adjusted EPS of $1.83 beat the analyst consensus estimate of $1.82.
Ecolab repurchased around 1.9 million shares of its common stock in the quarter.
The company held $1.26 billion in cash and equivalents as of September 30.
Outlook: Ecolab revised the FY24 adjusted EPS outlook from $6.50 – $6.70 to $6.60 – $6.70 against the consensus of $6.64.
Ecolab sees fourth-quarter adjusted EPS of $1.75 – $1.85 versus an estimate of $1.82.
Investors can gain exposure to the stock via VanEck Environmental Services ETF (NYSE:EVX) and Invesco Global Water ETF (NASDAQ:PIO).
Price Action: ECL shares are down 1.06% at $253.73 at the last check Tuesday.
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