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Why Is Element Solutions (ESI) Up 0.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Element Solutions (ESI - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Element's Q2 Earnings and Revenues Surpass Estimates
Element Solutions recorded earnings of 38 cents per share in the second quarter of 2024 compared with 11 cents in the year-ago quarter.
Barring one-time items, earnings came in at 36 cents per share. The figure beat the Zacks Consensus Estimate of 35 cents.
The company generated net sales of $612.7 million, up 5% year over year. The figure topped the Zacks Consensus Estimate of $611.6 million. Organic net sales rose 4%.
Element Solutions also delivered adjusted EBITDA growth of 16% on a year-over-year basis in the quarter.
Segment Highlights
Net sales in the Electronics segment rose 10% yearly to $391.7 million in the reported quarter. Organic net sales were up 7% from the previous year's reported figure. The metric beat our estimate of $359 million.
In the Industrial & Specialty segment, net sales declined 4% year over year to $221 million, with organic net sales dropping 1%. The figure was below our estimate of $249.2 million.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $309.3 million, up around 10% from the prior-year quarter’s levels. Long-term debt was $1,916.8 million at the end of the quarter, down around 6% year over year.
Cash from operating activities was $67 million, while free cash flow was $52 million for the reported quarter.
Outlook
Element Solutions now expects adjusted EBITDA in the range of $530-$545 million for 2024. The company anticipates generating a free cash flow in the range of $280-$300 million for 2024.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Element Solutions has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Element Solutions has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Element Solutions (ESI) Up 0.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Element Solutions (ESI - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Element's Q2 Earnings and Revenues Surpass Estimates
Element Solutions recorded earnings of 38 cents per share in the second quarter of 2024 compared with 11 cents in the year-ago quarter.
Barring one-time items, earnings came in at 36 cents per share. The figure beat the Zacks Consensus Estimate of 35 cents.
The company generated net sales of $612.7 million, up 5% year over year. The figure topped the Zacks Consensus Estimate of $611.6 million. Organic net sales rose 4%.
Element Solutions also delivered adjusted EBITDA growth of 16% on a year-over-year basis in the quarter.
Segment Highlights
Net sales in the Electronics segment rose 10% yearly to $391.7 million in the reported quarter. Organic net sales were up 7% from the previous year's reported figure. The metric beat our estimate of $359 million.
In the Industrial & Specialty segment, net sales declined 4% year over year to $221 million, with organic net sales dropping 1%. The figure was below our estimate of $249.2 million.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $309.3 million, up around 10% from the prior-year quarter’s levels. Long-term debt was $1,916.8 million at the end of the quarter, down around 6% year over year.
Cash from operating activities was $67 million, while free cash flow was $52 million for the reported quarter.
Outlook
Element Solutions now expects adjusted EBITDA in the range of $530-$545 million for 2024. The company anticipates generating a free cash flow in the range of $280-$300 million for 2024.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Element Solutions has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Element Solutions has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.