11:01 AM EDT, 06/20/2024 (MT Newswires) -- Ecolab's ( ECL ) fiscal Q2 earnings could exceed market expectations, though its revenue is likely to fall short, RBC Capital Markets said in a note.

The company is scheduled to report fiscal Q2 results July 30. RBC expects adjusted earnings of $1.68 per share on revenue of $3.98 billion. The market consensus is for $1.67 and $4.03 billion, respectively, according to the note.

Within industrials, the company's water business growth is expected to improve from the previous quarter amid the continued demand for sustainable water management, RBC said.

"We expect continued robust growth in food service, lodging, and long-term care and low double-digit sales growth in 2Q despite tough comps," RBC analyst Ashish Sabadra said. "However, the lapping of last year's pricing actions and end-market softness will likely weigh on the business modestly."

The brokerage expects the healthcare business to remain weak amid the company's right-sizing efforts, according to the note.

RBC kept its outperform rating on the stock with a price target of $260.

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