Thursday 20th of January 2022 02:17:04 PM

Ecolab cuts Q4 earnings guidance on COVID, supply chain disruptions

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  • Ecolab (NYSE:ECL) -6.2% post-market after saying it expects to report a 10% Y/Y sales increase in Q4 but sees earnings coming in below expectations, citing COVID-related effects on broad business activity.
  • Ecolab says it "absorbed significant short-term cost increases to assure seamless customer supply in a very tight environment that impacted margins in the short-term."
  • The company estimates the supply disruptions will hurt Q4 earnings by $0.10/share, resulting in adjusted EPS from continuing operations of $1.26-$1.28, below $1.39 analyst consensus estimate.
  • Assuming the rate of cost inflation and COVID impacts ease in the coming quarters, Ecolab expects continued strong sales and pricing momentum in 2022, with full-year EPS growth in the low-teens.
  • Ecolab shares have traded roughly flat over the past year while dropping 7% YTD.


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