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 Solutions (ESI) Q1 Earnings Top, Sales Lag Estimates
Read MoreHide Full Article
Element Solutions Inc (ESI - Free Report) recorded net loss from continuing operations of $3.5 million or 2 cents per share in first-quarter 2019, narrower than a loss of $8.9 million or 4 cents in the year-ago quarter.
Adjusted earnings per share (EPS) for the quarter were 20 cents, which surpassed the Zacks Consensus Estimate of 18 cents.
The specialty chemicals company generated net sales of $459.8 million, down 6.6% year over year. The figure lagged the Zacks Consensus Estimate of $463 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, fell 3%.
Adjusted EBITDA came in at $99 million, down 5% year over year. Adjusted EBITDA rose 1% on a constant-currency basis.
Per management, weakness in end-markets from second-half 2018 persisted in the reported quarter as reflected in the financial results.
Platform Specialty Products Corporation Price, Consensus and EPS Surprise
Net sales in the Electronics segment fell 8% year over year to $266 million. Organic net sales dipped 5%. Adjusted EBITDA amounted to $56 million, down 6%.
Net sales in the Industrial & Specialty unit fell 5% to $194 million. Organic net sales were flat. Adjusted EBITDA in the segment was $42 million, down 4%.
Financial Position
As of Mar 31, 2019, Element Solutions had cash and cash equivalents of $230.4 million, down roughly 44.9% year over year. Long-term debt was $1,516.5 million at the end of the first quarter.
Outlook
The company reiterated previous guidance for 2019. It expects adjusted EPS in the range of 82-87 cents per share. Adjusted EBITDA growth is projected in the band 5-8% at constant currency. The company expects flat to 2% organic net sales growth.
Price Performance
Shares of Element Solutions have gained 3.4% in a year’s time compared with the industry’s 7.1% rise.
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Sandstorm Gold has an expected earnings growth rate of 200% for 2019. The company’s shares have gained 10.9% in the past year.
Israel Chemicals has an expected earnings growth rate of 13.5% for the current year. The company’s shares have appreciated 22% in a year’s time.
AngloGold has an expected earnings growth rate of 86.8% for 2019. Its shares have surged 36.6% in a year’s time.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Element Solutions (ESI) Q1 Earnings Top, Sales Lag Estimates
Element Solutions Inc (ESI - Free Report) recorded net loss from continuing operations of $3.5 million or 2 cents per share in first-quarter 2019, narrower than a loss of $8.9 million or 4 cents in the year-ago quarter.
Adjusted earnings per share (EPS) for the quarter were 20 cents, which surpassed the Zacks Consensus Estimate of 18 cents.
The specialty chemicals company generated net sales of $459.8 million, down 6.6% year over year. The figure lagged the Zacks Consensus Estimate of $463 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, fell 3%.
Adjusted EBITDA came in at $99 million, down 5% year over year. Adjusted EBITDA rose 1% on a constant-currency basis.
Per management, weakness in end-markets from second-half 2018 persisted in the reported quarter as reflected in the financial results.
Platform Specialty Products Corporation Price, Consensus and EPS Surprise
Platform Specialty Products Corporation Price, Consensus and EPS Surprise | Platform Specialty Products Corporation Quote
Segment Highlights
Net sales in the Electronics segment fell 8% year over year to $266 million. Organic net sales dipped 5%. Adjusted EBITDA amounted to $56 million, down 6%.
Net sales in the Industrial & Specialty unit fell 5% to $194 million. Organic net sales were flat. Adjusted EBITDA in the segment was $42 million, down 4%.
Financial Position
As of Mar 31, 2019, Element Solutions had cash and cash equivalents of $230.4 million, down roughly 44.9% year over year. Long-term debt was $1,516.5 million at the end of the first quarter.
Outlook
The company reiterated previous guidance for 2019. It expects adjusted EPS in the range of 82-87 cents per share. Adjusted EBITDA growth is projected in the band 5-8% at constant currency. The company expects flat to 2% organic net sales growth.
Price Performance
Shares of Element Solutions have gained 3.4% in a year’s time compared with the industry’s 7.1% rise.
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Sandstorm Gold Ltd (SAND - Free Report) , Israel Chemicals Ltd. (ICL - Free Report) and AngloGold Ashanti Limited (AU - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandstorm Gold has an expected earnings growth rate of 200% for 2019. The company’s shares have gained 10.9% in the past year.
Israel Chemicals has an expected earnings growth rate of 13.5% for the current year. The company’s shares have appreciated 22% in a year’s time.
AngloGold has an expected earnings growth rate of 86.8% for 2019. Its shares have surged 36.6% in a year’s time.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>