We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Element (ESI) Q2 Earnings In Line With Estimates, Revenues Lag
Read MoreHide Full Article
Element Solutions Inc. (ESI - Free Report) recorded second-quarter 2023 earnings of 11 cents per share compared with 25 cents in the year-ago quarter.
Adjusted earnings per share came in at 31 cents in the quarter, which matched the Zacks Consensus Estimate.
The company generated net sales of $586.1 million, down 13% year over year. The figure also missed the Zacks Consensus Estimate of $626.9 million. The company faced headwinds from the weakening of the electronics market in the quarter.
Element Solutions Inc. Price, Consensus and EPS Surprise
Net sales in the Electronics segment fell 19% year over year to $356 million in the reported quarter, with organic net sales down 9% from the previous year's reported figure. The figure fell short of our estimate of $362.7 million.
In the Industrial & Specialty segment, net sales declined 2% year over year to $230 million, with organic net sales also down 2%. The figure was below our estimate of $256.2 million.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $282.4 million, up 30.7% year over year. Long-term debt was $2,029.4 million at the end of the quarter, up 7.4% year over year.
Cash from operating activities was $81 million in the quarter. Free cash flow was $67 million.
Outlook
The company expects adjusted EBITDA for third-quarter 2023 of roughly $125 million. ESI revised its adjusted EBITDA guidance to the range of $490 million to $500 million for 2023.
It estimates full-year 2023 adjusted earnings per share of around $1.30. ESI anticipates generating a free cash flow of roughly $265 million for 2023.
Price Performance
Shares of Element Solutions have gained 1.2% in a year compared with a 13.1% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space include Livent Corporation ,and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and United States Steel Corporation (X - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%. The company’s shares have gained 5% in the past year.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 92.7% in the past year.
The Zacks Consensus Estimate for X’s current-year earnings has been revised 5.4% upward in the past 60 days. U.S. Steel beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 18.1% on average. The company’s shares have risen roughly 20.9% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Element (ESI) Q2 Earnings In Line With Estimates, Revenues Lag
Element Solutions Inc. (ESI - Free Report) recorded second-quarter 2023 earnings of 11 cents per share compared with 25 cents in the year-ago quarter.
Adjusted earnings per share came in at 31 cents in the quarter, which matched the Zacks Consensus Estimate.
The company generated net sales of $586.1 million, down 13% year over year. The figure also missed the Zacks Consensus Estimate of $626.9 million. The company faced headwinds from the weakening of the electronics market in the quarter.
Element Solutions Inc. Price, Consensus and EPS Surprise
Element Solutions Inc. price-consensus-eps-surprise-chart | Element Solutions Inc. Quote
Segment Highlights
Net sales in the Electronics segment fell 19% year over year to $356 million in the reported quarter, with organic net sales down 9% from the previous year's reported figure. The figure fell short of our estimate of $362.7 million.
In the Industrial & Specialty segment, net sales declined 2% year over year to $230 million, with organic net sales also down 2%. The figure was below our estimate of $256.2 million.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $282.4 million, up 30.7% year over year. Long-term debt was $2,029.4 million at the end of the quarter, up 7.4% year over year.
Cash from operating activities was $81 million in the quarter. Free cash flow was $67 million.
Outlook
The company expects adjusted EBITDA for third-quarter 2023 of roughly $125 million. ESI revised its adjusted EBITDA guidance to the range of $490 million to $500 million for 2023.
It estimates full-year 2023 adjusted earnings per share of around $1.30. ESI anticipates generating a free cash flow of roughly $265 million for 2023.
Price Performance
Shares of Element Solutions have gained 1.2% in a year compared with a 13.1% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space include Livent Corporation ,and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and United States Steel Corporation (X - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%. The company’s shares have gained 5% in the past year.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 92.7% in the past year.
The Zacks Consensus Estimate for X’s current-year earnings has been revised 5.4% upward in the past 60 days. U.S. Steel beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 18.1% on average. The company’s shares have risen roughly 20.9% in the past year.