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) Q4 Earnings Meet Estimate, Sales Up Y/Y
Read MoreHide Full Article
Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) from continuing operations of 12 cents per share in fourth-quarter 2020 compared with 29 cents in the year-ago quarter.
Adjusted earnings per share (EPS) of 31 cents for the quarter were in line with the Zacks Consensus Estimate.
The company generated net sales of $536.6 million, up around 18% year over year. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, rose 10% year over year.
The company saw a rebound in its industrially oriented businesses in the fourth quarter. Its high-end electronics business also continued its momentum in the quarter. Element Solutions witnessed record net sales and adjusted EBITDA in the fourth quarter since its launch in February 2019.
Element Solutions Inc. Price, Consensus and EPS Surprise
Net sales in the Electronics segment rose 26% year over year to $343 million in the reported quarter. Organic net sales increased 16% from the year-ago quarter’s reported figure. Adjusted EBITDA was $81 million, up 30% year over year.
Net sales in the Industrial & Specialty unit went up 6% year over year to $193 million. Organic net sales moved up 1% year over year. Adjusted EBITDA in the segment was $45 million, up 13% year over year.
Financial Position
Element Solutions ended the year with cash and cash equivalents of $291.9 million, up 53.6% year over year. Long-term debt was $1,508.1 million at the end of the year, down 0.3% year over year.
The company generated cash flows from operating activities of $81.7 million in the reported quarter. Free cash flows for the quarter were $75 million.
Outlook
The company expects adjusted EBITDA growth of around 7% year over year in 2021. The company is also projecting a 15-20% increase in adjusted EPS to the range of $1.10-1.15. Moreover, it anticipates generating free cash flow of roughly $275 million for 2021.
Element Solutions believes that 2021 could be a record year for its business. It expects full year cash flow generation to be a record, which will provide flexibility for additional capital deployment toward acquisitions, share repurchases and potentially increased dividends.
Price Performance
Shares of Element Solutions have surged 68.1% in a year compared with 24.9% rise of the industry.
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
BHP has an expected earnings growth rate of 65.6% for the current fiscal. The company’s shares have gained around 72.3% in the past year. It currently carries a Zacks Rank #2.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 76.1% in the past year. It currently sports a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Element Solutions (ESI) Q4 Earnings Meet Estimate, Sales Up Y/Y
Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) from continuing operations of 12 cents per share in fourth-quarter 2020 compared with 29 cents in the year-ago quarter.
Adjusted earnings per share (EPS) of 31 cents for the quarter were in line with the Zacks Consensus Estimate.
The company generated net sales of $536.6 million, up around 18% year over year. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, rose 10% year over year.
The company saw a rebound in its industrially oriented businesses in the fourth quarter. Its high-end electronics business also continued its momentum in the quarter. Element Solutions witnessed record net sales and adjusted EBITDA in the fourth quarter since its launch in February 2019.
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 26% year over year to $343 million in the reported quarter. Organic net sales increased 16% from the year-ago quarter’s reported figure. Adjusted EBITDA was $81 million, up 30% year over year.
Net sales in the Industrial & Specialty unit went up 6% year over year to $193 million. Organic net sales moved up 1% year over year. Adjusted EBITDA in the segment was $45 million, up 13% year over year.
Financial Position
Element Solutions ended the year with cash and cash equivalents of $291.9 million, up 53.6% year over year. Long-term debt was $1,508.1 million at the end of the year, down 0.3% year over year.
The company generated cash flows from operating activities of $81.7 million in the reported quarter. Free cash flows for the quarter were $75 million.
Outlook
The company expects adjusted EBITDA growth of around 7% year over year in 2021. The company is also projecting a 15-20% increase in adjusted EPS to the range of $1.10-1.15. Moreover, it anticipates generating free cash flow of roughly $275 million for 2021.
Element Solutions believes that 2021 could be a record year for its business. It expects full year cash flow generation to be a record, which will provide flexibility for additional capital deployment toward acquisitions, share repurchases and potentially increased dividends.
Price Performance
Shares of Element Solutions have surged 68.1% in a year compared with 24.9% rise of the industry.
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 84.3% for the current fiscal. The company’s shares have surged around 177.4% in a year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP has an expected earnings growth rate of 65.6% for the current fiscal. The company’s shares have gained around 72.3% in the past year. It currently carries a Zacks Rank #2.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 76.1% in the past year. It currently sports a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>