On Tuesday, February 16, Ecolab ECL will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Ecolab EPS is expected to be around $1.25, according to sell-side analysts. Sales will likely be near $3.11 billion. Ecolab reported a profit of $1.69 per share when it published results during the same quarter last year. Sales in that period totaled $3.82 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 26.04%. Sales would be down 18.67% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.13 | 0.85 | 1.06 | 1.69 |
| EPS Actual | 1.15 | 0.65 | 1.13 | 1.69 |
| Revenue Estimate | 3.00 B | 2.84 B | 3.50 B | 3.88 B |
| Revenue Actual | 3.02 B | 2.69 B | 3.58 B | 3.82 B |
Stock Performance
Shares of Ecolab were trading at $216.26 as of February 11. Over the last 52-week period, shares are up 5.87%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Ecolab is scheduled to hold the call at 13:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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