Element Solutions Inc (ESI - Free Report) recorded net loss from continuing operations (as reported) of $14.2 million or 5 cents per share in fourth-quarter 2018, narrower than a loss of around $18.8 million or 6 cents a year ago.
Adjusted earnings for the reported quarter were 2 cents per share, in line with the Zacks Consensus Estimate.
The specialty chemicals company raked in net sales of $478 million for the quarter, down roughly 2% year over year. It also lagged the Zacks Consensus Estimate of $480 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, rose 1%.
Adjusted EBITDA for the reported quarter came in at $99 million, down 5% year over year. Adjusted EBITDA fell 1% on a constant currency basis.
FY18 Results
For 2018, net loss from continuing operations (as reported) was $77 million or 27 cents per share, lower than net loss $191.8 million or 68 cents per share recorded in 2017.
Net sales for the year rose roughly 4% year over year to $1,961 million. Organic net sales went up 3%. The company achieved organic growth notwithstanding a difficult macro environment.
Segment Highlights
Net sales from the Electronics segment fell 4% year over year to $282.1 million. Organic net sales dipped 1%. Adjusted EBITDA for the division was $58.3 million, down 8%.
Net sales from the Industrial & Specialty unit rose 1% to $196.3 million. Organic net sales rose 4%. Adjusted EBITDA for the segment was $40.6 million, up 1%.
Financial Position
Element Solutions exited 2018 with cash and cash equivalents of $233.6 million, down roughly 10% year over year. Long-term debt at the end of the year was $5,350.7 million, down around 2%.
Outlook
The company reiterated its earlier guidance for 2019. It expects organic net sales growth of 1-3% and adjusted EBITDA growth (in constant currency) of 5-8% for 2019. The company expects foreign exchange headwinds of roughly 2% to net sales and around $15 million to adjusted EBITDA factoring in end-2018 exchange rates.
Element Solutions also expects adjusted earnings for the year to be 82-87 cents per share, including the impact of lower share count as a result of its repurchase of 37 million shares on Feb 8, 2019.
Zacks Rank & Stocks to Consider
Element Solutions currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Israel Chemicals Ltd. (ICL - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has an expected earnings growth rate of 8.8% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares have shot up around 128% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Israel Chemicals has an expected earnings growth rate of 10.8% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 35% over the past year.
Franco-Nevada has an expected earnings growth rate of 11.2% for the current year and carries a Zacks Rank #2. Its shares have gained roughly 7% in the past year.
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Element Solutions Inc (ESI - Free Report) recorded net loss from continuing operations (as reported) of $14.2 million or 5 cents per share in fourth-quarter 2018, narrower than a loss of around $18.8 million or 6 cents a year ago.
Adjusted earnings for the reported quarter were 2 cents per share, in line with the Zacks Consensus Estimate.
The specialty chemicals company raked in net sales of $478 million for the quarter, down roughly 2% year over year. It also lagged the Zacks Consensus Estimate of $480 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, rose 1%.
Adjusted EBITDA for the reported quarter came in at $99 million, down 5% year over year. Adjusted EBITDA fell 1% on a constant currency basis.
FY18 Results
For 2018, net loss from continuing operations (as reported) was $77 million or 27 cents per share, lower than net loss $191.8 million or 68 cents per share recorded in 2017.
Net sales for the year rose roughly 4% year over year to $1,961 million. Organic net sales went up 3%. The company achieved organic growth notwithstanding a difficult macro environment.
Segment Highlights
Net sales from the Electronics segment fell 4% year over year to $282.1 million. Organic net sales dipped 1%. Adjusted EBITDA for the division was $58.3 million, down 8%.
Net sales from the Industrial & Specialty unit rose 1% to $196.3 million. Organic net sales rose 4%. Adjusted EBITDA for the segment was $40.6 million, up 1%.
Financial Position
Element Solutions exited 2018 with cash and cash equivalents of $233.6 million, down roughly 10% year over year. Long-term debt at the end of the year was $5,350.7 million, down around 2%.
Outlook
The company reiterated its earlier guidance for 2019. It expects organic net sales growth of 1-3% and adjusted EBITDA growth (in constant currency) of 5-8% for 2019. The company expects foreign exchange headwinds of roughly 2% to net sales and around $15 million to adjusted EBITDA factoring in end-2018 exchange rates.
Element Solutions also expects adjusted earnings for the year to be 82-87 cents per share, including the impact of lower share count as a result of its repurchase of 37 million shares on Feb 8, 2019.
Zacks Rank & Stocks to Consider
Element Solutions currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Israel Chemicals Ltd. (ICL - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has an expected earnings growth rate of 8.8% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares have shot up around 128% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Israel Chemicals has an expected earnings growth rate of 10.8% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 35% over the past year.
Franco-Nevada has an expected earnings growth rate of 11.2% for the current year and carries a Zacks Rank #2. Its shares have gained roughly 7% in the past year.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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