Element Solutions Inc.'s (ESI) shares have risen 15.5% in the past three months, outperforming the industry's growth of 7.2%. Image Source: Zacks Investment Research Let's take a look at the factors driving the stock's price appreciation. What's Driving ESI? Element Solutions is on track to achieve record-adjusted EBITDA in 2024, driven by strong execution and strategic positioning in the electronics sector, which underpins its robust long-term growth outlook. The company has revised its 2024 adjusted EBITD ...

A month has gone by since the last earnings report for Element Solutions (ESI) . Shares have added about 0.1% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Element's Q2 Earnings and Revenues Surp ...

Element Solutions Inc. (ESI) experienced a 11.3% increase in its stock value in the past six months, driven by robust financial results in the second quarter and raised financial guidance for 2024. The stock offers an attractive investment opportunity with strong growth prospects, as reflected in its Zacks Rank #1 (Strong Buy). Positive Earnings Surprise History ESI outperformed the Zacks Consensus Estimate in three of the last four quarters while matching the same on the remaining occasion. It delivered a ...

Core Viewpoint - Element Solutions Inc. (ESI) has seen a significant stock price appreciation of 11.5% over the past six months, outperforming the industry's decline of 22.3% [1] Group 1: Financial Performance - The company is on track to achieve record adjusted EBITDA in 2024, with an upward revision of its forecast from $515-$530 million to $530-$545 million [2] - Adjusted earnings per share (EPS) for 2024 are projected to be between $1.40 and $1.46, with expected free cash flow of $280-$300 million [2] - In Q2 2024, ESI reported an adjusted EPS of 36 cents, exceeding the Zacks Consensus Estimate of 35 cents [3] - Net sales for Q2 2024 reached $612.7 million, a 5% year-over-year increase, surpassing the Zacks Consensus Estimate of $611.6 million [3] - Organic net sales grew by 4%, while adjusted EBITDA rose by 16% year-over-year to $135 million [3] Group 2: Market Dynamics - The company benefited from a recovery in the electronics markets during Q2, with high-value end markets contributing to a favorable product mix [4] - Sales in the Electronics segment grew by 10% year-over-year to $391.7 million, with organic net sales rising 7% from last year's figures [4] Group 3: Earnings Surprises and Estimates - Element Solutions has beaten estimates in three of the last four quarters, delivering a trailing four-quarter average earnings surprise of 3.8% [5] - The Zacks Consensus Estimate for its 2024 EPS stands at $1.42, reflecting a 10% year-over-year increase [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36272 Element Solutions Inc (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA margins expanded by 250 basis points, with adjusted EBITDA growing over 20% year-over-year on a constant currency basis [15][40] - Net sales in electronics grew 7% organically, while net sales in the Industrial & Specialty segment declined 1% organically [20][21] - The strengthening U.S. dollar negatively impacted total company net sales and adjusted EBITDA by roughly 3% and 5%, respectively, on a year-over-year basis [40] Business Line Data and Key Metrics Changes - Revenue in Circuitry Solutions grew over 20% organically, driven by strong demand from high-performance computing, AI, EV, and certain mobile markets [9][15] - The Industrial & Specialty segments experienced a combination of softer automotive demand in Europe and lower revenue from metal price surcharges, yet profitability increased significantly due to lower raw material costs [10][11] - Semiconductor solutions grew 2% organically, with significant increases in wafer-level packaging sales in Asia, partially offset by softer semiconductor assembly sales for power electronics [23] Market Data and Key Metrics Changes - Demand across Europe and from automotive customers globally was sluggish, while Asia showed relative strength with increased demand from Chinese exports [24] - The smartphone market has not recovered meaningfully year-to-date, with estimates suggesting only low single-digit growth from Western OEMs [42] - Energy Solutions remained a bright spot with organic sales growth of 9% in the quarter, driven by volume and modest pricing actions [44] Company Strategy and Development Direction - The company is focused on scaling manufacturing capacity to meet commercial opportunities in wafer-level packaging and Circuitry Solutions [27][18] - Investments are being made in dye and package-attached solutions, a new research center in India, and high-volume manufacturing capacity for nano copper technologies [16][18] - The company aims to optimize its footprint by expanding manufacturing capacity for future growth areas and building research and applications development in high-leverage geographies [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth, citing emerging sources of demand in electronics and a constructive view on broader electronics demand improvement beginning in the second half [46][37] - The company does not expect a recovery in industrial markets in the second half but anticipates stronger results from the semiconductor business [81][46] - The outlook for 2024 has improved, with expectations for market outperformance [37] Other Important Information - The company generated $52 million of free cash flow in the second quarter, with $33 million invested into working capital due to sequential revenue acceleration [25] - CapEx in the quarter was $15 million, focused on strategic capacity expansion projects and applications development initiatives [33] - The company is on track for record EBITDA this year, despite a $50-plus million FX headwind [130] Q&A Session Summary Question: Importance of smartphones and second half outlook - Management indicated that while smartphones are a significant source of demand, new sources of demand are emerging outside the smartphone market, propelling business growth [51] - The third quarter is historically the strongest, with expectations for a 5% to 10% uplift in the second half, depending on smartphone market recovery [53] Question: Strength of 2Q and uncertainty in 3Q - Management does not see 2Q as a pull forward, citing new emerging sources of demand driving substantial growth [55] Question: Semiconductor business growth - The wafer-level packaging business had strong growth, while the semi-assembly business was softer due to the electric vehicle market [60] Question: Free cash flow conversion - The company expects free cash flow in the range of $280 million to $300 million for 2024, driven by working capital investment [71] Question: M&A focus - Management is open to opportunistic M&A, looking for businesses that can be improved and are available at attractive valuations [82] Question: Incremental margins in the quarter - Incremental margins were driven by a favorable mix and cost deflation, with higher-margin verticals outperforming [112] Question: Long-term growth confidence - Management cited cyclical recovery and secular growth as key factors for confidence in record earnings ahead [130]

Second Quarter 2024 Earnings Presentation SAFE HARBOR These projections and statements reflect management's estimates, assumptions and expectations with respect to future events and financial performance, and are believed to be reasonable, though are inherently uncertain and difficult to predict. Such projections and statements are based on the assessment of information available as of the current date, and the Company does not undertake any obligations to provide any further updates. Actual results could d ...

The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $611.6 million. With the consensus EPS estimate being $0.35, the EPS surprise was +2.86%. Here is how Element Solutions performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Shares of Element Solutions have returned -0.7% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating t ...

Element Solutions (ESI) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.86%. A quarter ago, it was expected that this specialty chemical and printing products would post earnings of $0.32 per share when it actually produced earnings of $0.34, delivering a surprise of 6.25%. Over th ...

EXHIBIT 99.1 Element Solutions Inc Announces 2024 Second Quarter Financial Results Miami, Fla., July 29, 2024 -- Element Solutions Inc (NYSE:ESI) ("Element Solutions" or the "Company"), a global and diversified specialty chemicals company, today announced its financial results for the three and six months ended June 30, 2024. Executive Commentary President and Chief Executive Officer Benjamin Gliklich commented, "Element Solutions delivered an exceptional second quarter. Earnings growth accelerated despite ...