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Element Solutions (ESI) Q4 Earnings and Revenues Beat Estimate
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Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) from continuing operations of a penny per share in fourth-quarter 2021 compared with 12 cents in the year-ago quarter.
Adjusted earnings per share (EPS) totalled 31 cents in the quarter, which beat the Zacks Consensus Estimate of 29 cents.
The company generated net sales of $646.9 million, up around 21% year over year. The figure beat the Zacks Consensus Estimate of $597.5 million.
Element Solutions Inc. Price, Consensus and EPS Surprise
Net sales in the Electronics segment rose 16% year over year to $400 million in the reported quarter. Organic net sales inched up 1% from the year-ago quarter’s reported figure. Adjusted EBITDA was $80 million, down 1% year over year.
Net sales in the Industrial & Specialty unit rose 28% year over year to $247 million. Organic net sales moved up 4% year over year. Adjusted EBITDA in the segment was $43 million, down 5% year over year.
FY21 Results
Earnings (as reported) for full-year 2021 were 82 cents per share compared with 30 cents per share a year ago. Net sales rose 29.5% year over year to $2,399.8 million.
Financial Position
Element Solutions ended the year with cash and cash equivalents of $330.1 million, up 13.1% year over year. Long-term debt was $1,894.2 million at the end of the year, up 25.6% year over year.
The company generated cash flows from operating activities of $326 million in 2021. Free cash flows in the quarter were $280 million, up 12% year over year.
Outlook
The company expects adjusted EBITDA in the range of $575-$590 million in 2022. The company is also projecting adjusted EPS in the range of $1.55-1.60. ESI anticipates generating free cash flow between $310-$325 million for 2022.
Element Solutions expects that 2022 could be a record year for its business. It also forecasts first-quarter 2022 adjusted EBITDA to be roughly flat year-on-year at constant currency.
Price Performance
Shares of Element Solutions have surged 28.5% in a year against a 16.8% decline 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 are Allegheny Technologies (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 584.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 30.9% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 10.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 59.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.5% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 36.6% in a year.
AdvanSix has a projected earnings growth rate of 7.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 44.4% over a year. The company carries a Zacks Rank #2.
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Element Solutions (ESI) Q4 Earnings and Revenues Beat Estimate
Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) from continuing operations of a penny per share in fourth-quarter 2021 compared with 12 cents in the year-ago quarter.
Adjusted earnings per share (EPS) totalled 31 cents in the quarter, which beat the Zacks Consensus Estimate of 29 cents.
The company generated net sales of $646.9 million, up around 21% year over year. The figure beat the Zacks Consensus Estimate of $597.5 million.
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 rose 16% year over year to $400 million in the reported quarter. Organic net sales inched up 1% from the year-ago quarter’s reported figure. Adjusted EBITDA was $80 million, down 1% year over year.
Net sales in the Industrial & Specialty unit rose 28% year over year to $247 million. Organic net sales moved up 4% year over year. Adjusted EBITDA in the segment was $43 million, down 5% year over year.
FY21 Results
Earnings (as reported) for full-year 2021 were 82 cents per share compared with 30 cents per share a year ago. Net sales rose 29.5% year over year to $2,399.8 million.
Financial Position
Element Solutions ended the year with cash and cash equivalents of $330.1 million, up 13.1% year over year. Long-term debt was $1,894.2 million at the end of the year, up 25.6% year over year.
The company generated cash flows from operating activities of $326 million in 2021. Free cash flows in the quarter were $280 million, up 12% year over year.
Outlook
The company expects adjusted EBITDA in the range of $575-$590 million in 2022. The company is also projecting adjusted EPS in the range of $1.55-1.60. ESI anticipates generating free cash flow between $310-$325 million for 2022.
Element Solutions expects that 2022 could be a record year for its business. It also forecasts first-quarter 2022 adjusted EBITDA to be roughly flat year-on-year at constant currency.
Price Performance
Shares of Element Solutions have surged 28.5% in a year against a 16.8% decline 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 are Allegheny Technologies (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 584.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 30.9% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 10.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 59.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.5% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 36.6% in a year.
AdvanSix has a projected earnings growth rate of 7.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 44.4% over a year. The company carries a Zacks Rank #2.