Element Solutions Inc. ESI recorded earnings of 38 cents per share in the second quarter of 2024 compared with 11 cents in the year-ago quarter.
Barring one-time items, earnings came in at 36 cents per share. The figure beat the Zacks Consensus Estimate of 35 cents.
The company generated net sales of $612.7 million, up 5% year over year. The figure topped the Zacks Consensus Estimate of $611.6 million. Organic net sales rose 4%.
ESI also delivered adjusted EBITDA growth of 16% on a year-over-year basis in the quarter.
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 10% yearly to $391.7 million in the reported quarter. Organic net sales were up 7% from the previous year's reported figure. The metric beat our estimate of $359 million.
In the Industrial & Specialty segment, net sales declined 4% year over year to $221 million, with organic net sales dropping 1%. The figure was below our estimate of $249.2 million.
Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $309.3 million, up around 10% from the prior-year quarter’s levels. Long-term debt was $1,916.8 million at the end of the quarter, down around 6% year over year.
Cash from operating activities was $67 million, while free cash flow was $52 million for the reported quarter.
Outlook
ESI now expects adjusted EBITDA in the range of $530-$545 million for 2024. The company anticipates generating a free cash flow in the range of $280-$300 million for 2024.
Price Performance
Shares of Element Solutions have appreciated 28.4% in a year against a 13% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ESI currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Ashland Inc. ASH, Kinross Gold Corporation KGC and Agnico Eagle Mines Limited AEM. Ashland, Kinross and Agnico carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.3%. The company’s shares have increased 4.9% in the past year. It is slated to report fiscal third-quarter results on Aug 6.
The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 57 cents, indicating a rise of 30% from year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 75.9% in the past year. It will report second-quarter results on Jul 31.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $3.42, indicating a year-over-year rise of 53%. The consensus estimate for AEM’s earnings has increased 8% in the past 60 days. AEM beat the consensus estimate in the last four quarters, with the average earnings surprise being 16.5%. The stock has rallied 42.2% in the past year.It is scheduled to release second-quarter results on Jul 31.
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