Ecolab (ECL) recently beat analyst estimates, and management upped its guidance for the year.
Growth and Income
The company is expected grow it EPS 12.9% in 2010, 13.3% in 2011, and 13.2% per year for the next 3 to 5 years. The stock also offers investors a dividend yield of 1.3%.
This Zacks #2 Rank stock trades at 21.2x 2010 consensus EPS estimates and 18.8x 2011 consensus EPS estimates.
Business
Ecolab is the global leader in cleaning, sanitizing, food safety and infection prevention products and services. Ecolab delivers comprehensive programs and services to the foodservice, food and beverage processing, healthcare, and hospitality markets in more than 160 countries.
Strong First-Quarter Results
On April 27, the company announced that first-quarter sales totaled $1.4 billion, a 6.2% increase from the year-ago quarter. Earnings per share was $0.41, up 70.8%, and 2 cents above the Zacks Consensus Estimate.
Chairman and CEO Douglas Baker said that the company is confident in its prospects for 2010, and that the company’s markets are showing improvement from last year’s difficult environment.
Company Outlook
For the second quarter, Ecolab expects adjusted EPS of $0.54-$0.57. For full-year 2010, the company expects to earn $2.21-$2.26, up from its previous forecasted range of $2.17-$2.25.
Estimates Inching Higher
After reporting strong first-quarter results, analysts increased their estimates for 2010 and 2011.
In the last 30 days, the Zacks Consensus Estimate for 2010 is up 3 cents, or 1.4%, to $2.25, and the 2011 Zacks Consensus Estimate is up 3 cents, or 1.2%, to $2.54.
The Chart
Ecolab shares are up 30% in the last twelve months. The stock is now trading at about 4% off its 52-week high of $49.70. This is an area it first reached in Sept 2009. If the stock can hold the $45-$47 level, it should bode well for its future performance.
