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Element Solutions (ESI) Q2 Earnings and Sales Beat Estimates
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Element Solutions Inc. (ESI - Free Report) recorded earnings from continuing operations of a penny per share in second-quarter 2020, down from 6 cents in the year-ago quarter.
Adjusted earnings per share (“EPS”) of 18 cents for the quarter surpassed the Zacks Consensus Estimate of 14 cents.
The company generated net sales of $387 million, down 15% year over year. The figure, however, surpassed the Zacks Consensus Estimate of $355 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, fell 15% year over year.
Element Solutions Inc Price, Consensus and EPS Surprise
Net sales in the Electronics segment fell 5% year over year to $253 million in the reported quarter. Organic net sales dipped 6% from the year-ago reported figure. Adjusted EBITDA was $58 million, down 4% year over year.
Net sales in the Industrial & Specialty unit fell 29% year over year to $134 million. Organic net sales declined 26%. Adjusted EBITDA in the segment was $27 million, down 33% year over year.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $237.3 million, down 4.2% year over year. Long-term debt was $1,511.1 million at the end of the quarter, down 0.3% year over year.
The company generated cash flows from operating activities of $64 million in the reported quarter. Free cash flows for the second quarter was $61 million.
Outlook
The company expects adjusted EBITDA of $80 million for the third quarter of 2020. Moreover, it anticipates generating free cash flow of more than $185 million for the year.
Element Solutions also noted that it is difficult to predict macroeconomic conditions or operating results at this time due to the impact of the coronavirus outbreak.
Price Performance
Shares of Element Solutions moved up 13.9% in a year compared with the industry’s 31.6% growth.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Gold Fields Limited (GFI - Free Report) .
Barrick Gold has a projected earnings growth rate of 72.6% for the current year. The company’s shares have gained around 69% in a year. It currently has a Zacks Rank #2.
Gold Fields has an expected earnings growth rate of 35.7% for 2020. The company’s shares have rallied 126.5% in the past year.It is presently a Zacks #2 Ranked player.
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Element Solutions (ESI) Q2 Earnings and Sales Beat Estimates
Element Solutions Inc. (ESI - Free Report) recorded earnings from continuing operations of a penny per share in second-quarter 2020, down from 6 cents in the year-ago quarter.
Adjusted earnings per share (“EPS”) of 18 cents for the quarter surpassed the Zacks Consensus Estimate of 14 cents.
The company generated net sales of $387 million, down 15% year over year. The figure, however, surpassed the Zacks Consensus Estimate of $355 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, fell 15% year over year.
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 fell 5% year over year to $253 million in the reported quarter. Organic net sales dipped 6% from the year-ago reported figure. Adjusted EBITDA was $58 million, down 4% year over year.
Net sales in the Industrial & Specialty unit fell 29% year over year to $134 million. Organic net sales declined 26%. Adjusted EBITDA in the segment was $27 million, down 33% year over year.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $237.3 million, down 4.2% year over year. Long-term debt was $1,511.1 million at the end of the quarter, down 0.3% year over year.
The company generated cash flows from operating activities of $64 million in the reported quarter. Free cash flows for the second quarter was $61 million.
Outlook
The company expects adjusted EBITDA of $80 million for the third quarter of 2020. Moreover, it anticipates generating free cash flow of more than $185 million for the year.
Element Solutions also noted that it is difficult to predict macroeconomic conditions or operating results at this time due to the impact of the coronavirus outbreak.
Price Performance
Shares of Element Solutions moved up 13.9% in a year compared with the industry’s 31.6% growth.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Gold Fields Limited (GFI - Free Report) .
Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The stock has gained around 106% in a year. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barrick Gold has a projected earnings growth rate of 72.6% for the current year. The company’s shares have gained around 69% in a year. It currently has a Zacks Rank #2.
Gold Fields has an expected earnings growth rate of 35.7% for 2020. The company’s shares have rallied 126.5% in the past year.It is presently a Zacks #2 Ranked player.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>