October 30, 2018

One of our positions reported middling third-quarter results this morning, and the stock opened 6% lower, although it’s already making up some of those losses. As a result, we’re moving it to Hold.

Ecolab (ECL) moves to Hold

Ecolab reported middling third-quarter results this morning, and the stock opened 6% lower, although it’s already making up some of those losses.

Adjusted EPS rose 11% year-over-year, to $1.53, and met estimates. Sales rose 5%, to $3.75 billion, $10 million above the consensus estimate.

However, management lowered full-year expectations by 15 cents, citing higher raw material costs and changes in exchange rates. Management now expects full-year EPS to fall in the range of $5.20 to $5.30; analysts had previously been expecting full-year EPS to hit $5.36.

I’m going to move ECL to Hold today.

I’ll have more information on Ecolab, and all our other holdings, in tomorrow’s November issue of Cabot Dividend Investor.

Tom Hutchinson

Tom Hutchinson is the Chief Analyst of Cabot Dividend Investor, Cabot Income Advisor and Cabot Retirement Club. He is a Wall Street veteran with extensive experience in multiple areas of investing and finance.