Ecolab (ECL) reported Q3 EPS of $1.30, $0.02 worse than the analyst estimate of $1.32. Revenue for the quarter came in at $3.67 billion versus the consensus estimate of $3.67 billion.
GUIDANCE:
We have been preparing for what is now widely considered to be a more challenging macroeconomic environment, especially in Europe, with high delivered product costs and unfavorable currency translation impacts that are expected to persist well into 2023. As the war and energy crisis are having an increased short-term impact on demand and costs, we continue to expect earnings growth to progressively improve but at a more moderate pace than previously anticipated.
With this backdrop, we expect to deliver a continued strong acceleration in fourth quarter 2022 operating income growth. This improving operating performance is expected to be offset by unfavorable currency translation impacts of $0.11 per share (9 percentage points unfavorable impact to adjusted diluted earnings per share growth) and higher interest expense, resulting in fourth quarter adjusted diluted earnings per share approaching last year’s $1.28.
Looking ahead, with our strong business momentum, accelerating pricing, further productivity gains, and leading value proposition operating in a $152 billion global market, we expect to enter next year in a strong position to deliver earnings growth that progressively improves toward our double-digit historical performance.