U.S. markets closed
  • S&P Futures

    4,441.00
    +3.00 (+0.07%)
     
  • Dow Futures

    34,656.00
    +12.00 (+0.03%)
     
  • Nasdaq Futures

    15,303.50
    0.00 (0.00%)
     
  • Russell 2000 Futures

    2,256.30
    +1.10 (+0.05%)
     
  • Crude Oil

    73.22
    -0.08 (-0.11%)
     
  • Gold

    1,752.00
    +2.20 (+0.13%)
     
  • Silver

    22.66
    -0.02 (-0.08%)
     
  • EUR/USD

    1.1744
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.4100
    +0.0740 (+5.54%)
     
  • Vix

    18.63
    -2.24 (-10.73%)
     
  • GBP/USD

    1.3723
    +0.0002 (+0.01%)
     
  • USD/JPY

    110.4050
    +0.1040 (+0.09%)
     
  • BTC-USD

    44,541.41
    +872.74 (+2.00%)
     
  • CMC Crypto 200

    1,114.31
    +5.39 (+0.49%)
     
  • FTSE 100

    7,078.35
    -5.02 (-0.07%)
     
  • Nikkei 225

    30,200.89
    +561.49 (+1.89%)
     

Element Solutions (ESI) Q1 Earnings Top Estimate, Sales Up Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Element Solutions Inc. ESI recorded earnings (as reported) from continuing operations of 33 cents per share in first-quarter 2021, up from 3 cents in the year-ago quarter.

Adjusted earnings per share (EPS) of 37 cents for the quarter topped the Zacks Consensus Estimate of 32 cents.

The company generated net sales of $550.1 million, up around 22% year over year. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, rose 11% year over year. The company benefited from strong demand in the broader electronics supply chain and accelerated demand across the industrial economy.

Element Solutions Inc. Price, Consensus and EPS Surprise

Element Solutions Inc. Price, Consensus and EPS Surprise
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 31% year over year to $354 million in the reported quarter. Organic net sales increased 18% from the year-ago quarter’s reported figure. Adjusted EBITDA was $93 million, up 39% year over year.

Net sales in the Industrial & Specialty unit went up 7% year over year to $197 million. Organic net sales moved up 1% year over year. Adjusted EBITDA in the segment was $45 million, up 4% year over year.

Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $317.5 million, down around 36% year over year. Long-term debt was $1,507 million at the end of the quarter, down 0.3% year over year.

The company generated cash flows from operating activities of $33 million in the reported quarter. Free cash flows for the quarter were $24 million.

Outlook

The company increased in adjusted EPS guidance to at least $1.30, up from the prior view of $1.10-1.15. It also now expects adjusted EBITDA in the band of $500-$510 million. Moreover, it anticipates generating free cash flow of $285 million for 2021, up from $275 million expected earlier.

For the second quarter, the company sees adjusted EBITDA to be in the range of $125-$130 million. It expects higher raw material prices and other cost inflation to slightly impact profitability.

Price Performance

Shares of Element Solutions have surged 109% in a year compared with 32.4% rise of the industry.

Zacks Rank & Key Picks

Element Solutions currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Dow Inc. DOW) and Impala Platinum Holdings Limited IMPUY.

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 92% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 69% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 225% in the past year. It currently carries a Zacks Rank #1.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


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

Element Solutions Inc. (ESI) : Free Stock Analysis Report

Nucor Corporation (NUE) : Free Stock Analysis Report

Dow Inc. (DOW) : Free Stock Analysis Report

Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research