A month has gone by since the last earnings report for Element Solutions (ESI) . Shares have added about 6.9% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts. Element's Q4 Earnings in Line, Revenues ...

Financial Data and Key Metrics Changes - The company's top line declined 5% organically in 2023, primarily due to weak demand in Asia and electronics markets, although there was an improvement towards the end of the year [14][28] - Adjusted EBITDA declined 6% year-on-year on a constant currency basis, but margins improved by 20 basis points despite challenges from declining high-end electronics [14][33] - Free cash flow reached a record $282 million for the year, with $95 million generated in Q4, reflecting a release of approximately $15 million in working capital [21][30] Business Line Data and Key Metrics Changes - The semiconductor vertical grew 7% in Q4, tracking shipment growth for global handsets, indicating a positive trend as the company enters 2024 [10] - The assembly business experienced a 2% organic decline for the full year, but it outperformed the circuitry and semiconductor businesses, driven by strength in automotive markets [16][70] - Energy Solutions grew 11% organically, supported by increased offshore drilling activity and pricing actions [13][20] Market Data and Key Metrics Changes - The I&S segment declined 7% organically in Q4, with industrial surface treatment volume softening in Europe and China [12] - The industrial and specialty segment saw organic net sales fall 2% year-over-year, with industrial solutions declining 4% organically [19] - The electronics ecosystem showed signs of improvement, with organic growth declining only 1% compared to earlier high single-digit declines [35] Company Strategy and Development Direction - The company is focused on rebuilding variable costs and incurring additional operational expenses in response to higher demand and customer activity [41] - There is an emphasis on leveraging existing technologies and new offerings across advanced electronics applications to drive growth [48] - The company plans to continue its M&A strategy, having made significant acquisitions in 2023 that strengthen its position in high-end electronics [30][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, anticipating that the inventory correction in semiconductor and PCB end markets is behind them, with improving activity levels and orders [23][37] - The outlook for global industrial production is modest, with expectations for low single-digit growth in global auto production [40] - The company expects mid-single-digit organic growth in electronics for 2024, driven by improved customer activity [44] Other Important Information - The company reduced gross debt by over $100 million and extended the maturity on remaining term loans to 2030, maintaining a strong balance sheet [7][8] - The effective interest rate on outstanding term loans was 3.3% at year-end, with 80% of the capital structure remaining fixed rate until 2028 [8] Q&A Session Summary Question: What is the outlook for the electronics market in 2024? - Management noted that January was a strong month, and they feel confident in their guidance for Q1, with potential for outperformance based on customer ordering patterns [51][56] Question: Will the industrial and specialty segment see growth in 2024? - The I&S business is expected to grow modestly in 2024, with some customer wins ramping and stronger margins anticipated [62] Question: How does the company view M&A opportunities? - The company remains opportunistic regarding M&A, with strong cash flows allowing for potential acquisitions if the right opportunities arise [63][79] Question: What are the expectations for variable costs in 2024? - The company plans to rebuild incentive compensation, which is a one-time adjustment, while maintaining flexibility in operational costs [66][76] Question: What is the outlook for the company's business in China? - The company expects growth in China in 2024, particularly in the circuit board market and electric vehicle OEMs, despite a challenging year in 2023 [124]

Element Solutions Inc. (ESI) recorded earnings of 32 cents per share in fourth-quarter 2023 compared with earnings of 5 cents in the year-ago quarter. The figure was in line with the Zacks Consensus Estimate.The company generated net sales of $573.4 million, flat year over year. The figure missed the Zacks Consensus Estimate of $588.6 million. Organic net sales fell 3%.The company’s circuitry and semiconductor businesses returned to organic growth in the reported quarter. ESI also delivered adjusted EBITDA ...

Circuitry $424 (14%) Lower smartphone unit demand and industry inventory correction in several end markets Total $919 (2%) Industrial & Specialty Net Sales ($ in millions) Graphics $143 (1%) Newsprint declines, rationalization of lower-margin packaging business Energy $77 14% Higher offshore drilling activity and pricing actions ▪ Capital expenditures of $16 million in Q4 2023 were lower than planned due largely to timing | --- | --- | --- | |-------------------|---------|-------------| | $ millions | FY 20 ...

Element Solutions (ESI) came out with quarterly earnings of $0.32 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this specialty chemical and printing products would post earnings of $0.34 per share when it actually produced earnings of $0.36, delivering a surprise of 5.88%.Over the last four quarters, the company has surpassed consensus EPS estimates two time ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K 500 East Broward Boulevard, Suite 1860 33394 Fort Lauderdale, Florida (Zip Code) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 Re ...

MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE:ESI) announced today that Benjamin Gliklich, President and Chief Executive Officer, will participate in a fireside chat at the Bank of America 2024 Global Agriculture and Materials Conference in Fort Lauderdale, FL on Thursday, February 29, 2024 at 11:10 a.m. ET. A live webcast of the presentation will be made available in the Investors section of www.elementsolutionsinc.com. About Element Solutions Inc Element Solutions Inc is a leading specialty chemi ...

MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE: ESI) announced today that its board has declared a quarterly cash dividend of $0.08 per share of the company's common stock. The declared dividend will be paid on March 15, 2024 to stockholders of record as of the close of business on March 1, 2024. About Element Solutions Inc Element Solutions Inc is a leading specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. De ...

The market expects Element Solutions (ESI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 20, 2024, might help the stock move higher if these key nu ...

The Nagoya event centered on sustainability and the company's expanding global footprintNAGOYA, Japan, Feb. 13, 2024 /PRNewswire/ -- MacDermid Enthone Industrial Solutions, a leading manufacturer of chemical compounds utilized in surface finishing applications, proudly celebrated the opening of its facility in Nagoya, Japan on February 1st, with a ribbon cutting ceremony and customer event. The grand opening highlights the organization's commitment to providing local support and service, backed by global re ...