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Element Solutions (ESI) Tops Q1 Earnings and Revenues Estimates
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Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) of 23 cents per share in first-quarter 2022 compared with 33 cents in the year-ago quarter.
Adjusted earnings per share came in at 38 cents in the quarter, which beat the Zacks Consensus Estimate of 35 cents.
The company generated net sales of $680.2 million, up around 24% year over year. The figure beat the Zacks Consensus Estimate of $644 million. Organic net sales rose 7%. The company benefited from strong demand across many of its major end-markets in the quarter amid challenges from increased macroeconomic uncertainty and cost inflation.
Element Solutions Inc. Price, Consensus and EPS Surprise
Net sales in the Electronics segment rose 21% year over year to $427 million in the reported quarter. Organic net sales were up 8% from the year-ago quarter’s reported figure.
Net sales in the Industrial & Specialty unit rose 29% year over year to $253 million. Organic net sales moved up 4% year over year.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $218.8 million, down around 31% year over year. Long-term debt was $1,892.1 million at the end of the quarter, up roughly 26% year over year.
Net cash used in operating activities were $5.6 million for the quarter compared with net cash flows from operating activities of $32.6 million a year ago.
Outlook
The company raised the bottom-end of its guidance for adjusted EBITDA for 2022 to a range of $580-$590 million. It also reaffirmed its full-year adjusted earnings per share outlook in the range of $1.55-1.60. ESI anticipates generating free cash flow of between $310-$325 million for 2022.
The company also forecasts second-quarter 2022 adjusted EBITDA to be roughly $140 million.
Price Performance
Shares of Element Solutions have lost 6.8% in a year against a 20% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 34.3% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 80% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 47% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 33% in a year.
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Element Solutions (ESI) Tops Q1 Earnings and Revenues Estimates
Element Solutions Inc. (ESI - Free Report) recorded earnings (as reported) of 23 cents per share in first-quarter 2022 compared with 33 cents in the year-ago quarter.
Adjusted earnings per share came in at 38 cents in the quarter, which beat the Zacks Consensus Estimate of 35 cents.
The company generated net sales of $680.2 million, up around 24% year over year. The figure beat the Zacks Consensus Estimate of $644 million. Organic net sales rose 7%. The company benefited from strong demand across many of its major end-markets in the quarter amid challenges from increased macroeconomic uncertainty and cost inflation.
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 21% year over year to $427 million in the reported quarter. Organic net sales were up 8% from the year-ago quarter’s reported figure.
Net sales in the Industrial & Specialty unit rose 29% year over year to $253 million. Organic net sales moved up 4% year over year.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $218.8 million, down around 31% year over year. Long-term debt was $1,892.1 million at the end of the quarter, up roughly 26% year over year.
Net cash used in operating activities were $5.6 million for the quarter compared with net cash flows from operating activities of $32.6 million a year ago.
Outlook
The company raised the bottom-end of its guidance for adjusted EBITDA for 2022 to a range of $580-$590 million. It also reaffirmed its full-year adjusted earnings per share outlook in the range of $1.55-1.60. ESI anticipates generating free cash flow of between $310-$325 million for 2022.
The company also forecasts second-quarter 2022 adjusted EBITDA to be roughly $140 million.
Price Performance
Shares of Element Solutions have lost 6.8% in a year against a 20% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Element Solutions currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 34.3% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 80% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 47% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 33% in a year.