ST. PAUL, Minn. - Ecolab Inc . (NYSE: NYSE:ECL) reported a modest revenue increase of 3% to $4 billion for the second quarter, missing the consensus estimate of $4.03 billion. However, the company's adjusted earnings per share (EPS) of $1.68 edged past the analyst estimate of $1.67.
ECL shares were down 1.5% following the announcement.
The Institutional & Specialty segment led the growth with a strong 7%, while the Industrial, Healthcare & Life Sciences, and Pest Elimination segments also saw improvements. Despite facing a 1% headwind from unfavorable foreign currency exchange, organic sales grew by 4%.
Operating income margins reflected significant progress, with reported operating income margin at 16.5% and organic operating income margin reaching 17.0%, marking an increase of 360 basis points. This improvement was attributed to lower supply chain costs, value pricing, and volume growth, which more than compensated for investments aimed at growth.
Christophe Beck, Ecolab's chairman and chief executive officer, commented on the quarter's results, "We delivered another quarter of strong performance consistent with our expectations. Our global team executed very well to drive continued good sales growth and exceptional organic operating income margin expansion."
Looking ahead, Ecolab has raised its full-year 2024 adjusted diluted EPS guidance to a range of $6.50 to $6.70, representing an increase of 25% to 29% from the prior range of $6.40 to $6.70. This new guidance is slightly below the analyst consensus of $6.58. For the third quarter of 2024, the company anticipates adjusted diluted EPS to be between $1.75 and $1.85, reflecting a 14% to 20% increase.
Ecolab's ongoing investments in sales, digital technologies, and service capabilities are expected to continue driving growth and market share gains.
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