Research Desk Line-up: Orchids Paper Products Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ecolab Inc. (NYSE: ECL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ECL, following the Company's announcement of its financial results on August 01, 2017, for the second quarter of the fiscal year 2017. The Company reported better than expected results. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Cleaning Products industry. Pro-TD has currently selected Orchids Paper Products Company (NYSE American: TIS) for due-diligence and potential coverage as the Company reported on August 07, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Orchids Paper Products when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ECL; also brushing on TIS. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ECL

http://protraderdaily.com/optin/?symbol=TIS

Earnings Reviewed

For the three months ended June 30, 2017, Ecolab's revenue decreased 4% on a y-o-y basis and 5% to $3.46 billion on a fixed currency basis from $3.32 billion in Q2 FY16. The revenue surpassed analysts' expectations of $3.40 billion.

During Q2 FY17, Ecolab's gross margin decreased 30 basis points to 45.9% of revenue from 46.2% of revenue in Q2 FY16. For the reported quarter, the Company's adjusted gross margin decreased 130 basis points to 46.7% of revenue from 48% of revenue in Q2 FY16.

During Q2 FY17, the Company's operating income increased 6%; 7% to $439 million on a fixed currency basis from $412.5 million in Q2 FY16.

During Q2 FY17, Ecolab's net income increased 16% to $296.6 million on a y-o-y basis from $258.4 million in Q2 FY16. For the reported quarter, the Company's diluted earnings per share (EPS) increased 16% to $1.01 on a y-o-y basis from $0.87 in Q2 FY16. During Q2 FY17, Ecolab's adjusted diluted EPS increased 22% to $1.13 on a y-o-y basis from $1.08 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $1.12.

Ecolab's Segment Details

Global Industrial - During Q2 FY17, Global Industrial segment's revenue increased 3% to $1.21 billion on a fixed currency basis from $1.17 billion in Q2 FY16. For the reported quarter, the segment's operating income decreased 4% to $167.5 million on a y-o-y basis. During Q2 FY17, the segment's operating income margin decreased 110 basis points to 13.8% of revenue from 14.9% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating income margin decreased 100 basis points to 13.9% of revenue from 14.9% of revenue in Q2 FY16.

Global Institutional - During Q2 FY17, Global Industrial segment's revenue increased 8% to $1.22 billion on a fixed currency basis from $1.13 billion in Q2 FY16. For the reported quarter, the segment's operating income increased 7% to $259.8 million on a y-o-y basis. During Q2 FY17, the segment's operating income margin decreased 20 basis points to 21.3% of revenue from 21.5% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating income margin decreased 10 basis points to 21.6% of revenue from 2.7% of revenue in Q2 FY16.

Global Energy - During Q2 FY17, Global Energy segment's revenue increased 4% to $792.4 million on a fixed currency basis from $762.8 billion in Q2 FY16. For the reported quarter, the segment's operating income increased 8% to $73.4 million on a y-o-y basis. During Q2 FY17, the segment's operating income margin decreased 110 basis points to 9.3% of revenue from 10.4% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating income margin decreased 80 basis points to 9.2% of revenue from 10% of revenue in Q2 FY16.

Other - During Q2 FY17, Other segment's revenue increased 6% to $215.3 million on a fixed currency basis from $202.2 million in Q2 FY16. For the reported quarter, the segment's operating income decreased 3% to $37 million on a y-o-y basis. During Q2 FY17, the segment's operating income margin decreased 170 basis points to 17.2% of revenue from 18.9% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating income margin decreased 170 basis points to 17.2% of revenue from 18.9% of revenue in Q2 FY16.

Balance Sheet

As on July 01, 2017, Ecolab's cash and cash equivalents increased 21.5% to $260.7 million from $327.4 million in Q4 FY16. For the reported quarter, the Company's inventories increased 4.1% to $1.47 billion from $1.32 billion in Q4 FY16. During Q2 FY17, Ecolab's long-term debt decreased 7.2% to $5.91 billion from $6.15 billion in Q4 FY16.

Outlook

For FY17, Ecolab expects adjusted gross margin to be in the range of 47% - 48% of sales and SG&A to be in the band of 32% of sales. The Company estimates adjusted tax rate to be between 24% - 25% and adjusted EPS to be in the range of $4.7 - $4.9 for the fiscal year 2017.

Stock Performance

Ecolab's share price finished yesterday's trading session at $131.46, rising 1.27%. A total volume of 674.83 thousand shares have exchanged hands. The Company's stock price advanced 3.29% in the last three months, 7.97% in the past six months, and 7.36% in the previous twelve months. Additionally, the stock surged 12.15% since the start of the year. Shares of the Company have a PE ratio of 30.03 and have a dividend yield of 1.13%. The stock currently has a market cap of $38.17 billion.

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