Yahoo Finance Element Solutions (ESI) Earnings and Sales Surpass Estimates in Q2
Element Solutions Inc. ESI recorded earnings (as reported) of 25 cents per share in second-quarter 2022 compared with 32 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 37 cents.
The company generated net sales of $676.9 million, up around 15% year over year. The figure beat the Zacks Consensus Estimate of $676.2 million. Organic net sales rose 6%. The company witnessed strong business activities in Electronics markets during the quarter notwithstanding the lockdowns in China and the impacts of supply chain disruptions on the automotive business.
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 11% year over year to $439 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 24% year over year to $238 million. Organic net sales moved up 2% year over year.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $215.6 million, down around 32% year over year. Long-term debt was $1,889.9 million at the end of the quarter, up roughly 26% year over year.
Cash from operating activities was $74 million for the quarter. Free cash flow was $66 million in the reported quarter.
The company repurchased 2.2 million shares of its common stock during the second quarter.
Outlook
The company updated its guidance for adjusted EBITDA for 2022 to a range of $565-$575 million factoring in currency headwinds. It now sees full-year adjusted earnings per share in the range of $1.52-$1.55. ESI anticipates generating free cash flow of $270 million for 2022.
The company also forecasts third-quarter 2022 adjusted EBITDA to be roughly $140 million.
Price Performance
Shares of Element Solutions have lost 16.2% in a year against a 20.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Element Solutions currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation CBT, ATI Inc. ATI and Albemarle Corporation ALB.
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 20% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 21% in a year. The company flaunts a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ATI Inc. (ATI) : Free Stock Analysis Report
Element Solutions Inc. (ESI) : Free Stock Analysis Report
Albemarle Corporation (ALB) : Free Stock Analysis Report
Cabot Corporation (CBT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
