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Element Solutions (ESI) Ups View, Sees Record EBITDA in FY24
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Element Solutions Inc. (ESI - Free Report) announced an upward revision of its guidance for the second quarter and full year 2024. The company now anticipates adjusted EBITDA to be approximately $135 million for the second quarter, up from $125 million expected earlier.
The electronics business remains strong, with profitability improving and accelerating in some areas during the second quarter, ESI noted. Notably, the wafer level packaging and circuitry segments have expanded to support significant customer growth over the past two months. Although certain segments of the electronic markets are recovering, overall unit and chemistry volumes are still below long-term trends.
Despite a generally weaker industrial environment, the company expects to achieve record adjusted EBITDA in 2024, the highest since Element Solutions' inception in 2019. This optimistic outlook bolsters its confidence in its long-term growth prospects.
The company has increased its full-year 2024 adjusted EBITDA forecast from a range of $515 million to $530 million to a revised range of $530 million to $545 million. Additionally, ESI now projects 2024 adjusted EPS to be in the range of $1.40-$1.46.
Element Solution’s shares have gained 24.4% in a year against the industry’s 13% decline.
Image Source: Zacks Investment Research
ESI reported first-quarter 2024 adjusted earnings of 34 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents. The company achieved net sales of $575 million, which remained flat year over year and fell short of the Zacks Consensus Estimate of $601.8 million. Organic net sales increased 1%, while adjusted EBITDA grew 13% year over year to $127 million.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.31, indicating a year-over-year rise of 278%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 98.5% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the earnings surprise being 8.34%, on average. The stock has surged 42.6% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a year-over-year rise of 26.5%. ECL beat the consensus estimate in each of the last four quarters, with the earnings surprise being 1.3%, on average. The stock has rallied nearly 32.6% in the past year.
Image: Bigstock
Element Solutions (ESI) Ups View, Sees Record EBITDA in FY24
Element Solutions Inc. (ESI - Free Report) announced an upward revision of its guidance for the second quarter and full year 2024. The company now anticipates adjusted EBITDA to be approximately $135 million for the second quarter, up from $125 million expected earlier.
The electronics business remains strong, with profitability improving and accelerating in some areas during the second quarter, ESI noted. Notably, the wafer level packaging and circuitry segments have expanded to support significant customer growth over the past two months. Although certain segments of the electronic markets are recovering, overall unit and chemistry volumes are still below long-term trends.
Despite a generally weaker industrial environment, the company expects to achieve record adjusted EBITDA in 2024, the highest since Element Solutions' inception in 2019. This optimistic outlook bolsters its confidence in its long-term growth prospects.
The company has increased its full-year 2024 adjusted EBITDA forecast from a range of $515 million to $530 million to a revised range of $530 million to $545 million. Additionally, ESI now projects 2024 adjusted EPS to be in the range of $1.40-$1.46.
Element Solution’s shares have gained 24.4% in a year against the industry’s 13% decline.
Image Source: Zacks Investment Research
ESI reported first-quarter 2024 adjusted earnings of 34 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents. The company achieved net sales of $575 million, which remained flat year over year and fell short of the Zacks Consensus Estimate of $601.8 million. Organic net sales increased 1%, while adjusted EBITDA grew 13% year over year to $127 million.
Element Solutions Inc. Price and Consensus
Element Solutions Inc. price-consensus-chart | Element Solutions Inc. Quote
Zacks Rank & Key Picks
Element Solution currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , ATI Inc. (ATI - Free Report) and Ecolab Inc. (ECL - Free Report) . While Carpenter Technology and ATI sport a Zacks Rank #1 (Strong Buy) at present, Ecolab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.31, indicating a year-over-year rise of 278%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 98.5% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the earnings surprise being 8.34%, on average. The stock has surged 42.6% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a year-over-year rise of 26.5%. ECL beat the consensus estimate in each of the last four quarters, with the earnings surprise being 1.3%, on average. The stock has rallied nearly 32.6% in the past year.