Core Insights - Element Solutions is expected to achieve record adjusted EBITDA in 2024, with a revised forecast of $530-$545 million, up from $515-$530 million [2] - The company projects adjusted earnings per share (EPS) for 2024 to be between $1.40 and $1.46 [2] Financial Performance - In Q1 2024, Element Solutions reported adjusted EPS of 34 cents, exceeding the Zacks Consensus Estimate of 32 cents [9] - Net sales for Q1 2024 were $575 million, flat year-over-year, and below the Zacks Consensus Estimate of $601.8 million [9] - Organic net sales increased by 1%, while adjusted EBITDA grew by 13% year-over-year to $127 million [9] Market Trends - The electronics segment saw a 3% year-over-year increase in net sales to $349 million, with organic net sales rising by 4% [3] - The company experienced a recovery in electronics markets, supported by investments in high-value technologies and favorable pricing actions amid declining raw material prices [3][8] - Despite some recovery signs in the electronics market, overall unit and chemistry volumes remain below long-term trends [8] Stock Performance - Element Solutions' shares have appreciated by 15.2% in the past six months, outperforming the industry's decline of 20.7% and the S&P 500's rise of 14.5% [6] - The company has a trailing four-quarter average earnings surprise of 3% [10]

Company Overview - Element Solutions Inc, previously known as Platform Specialty Products Corporation, is a leading provider of specialty chemicals, offering innovative solutions across various industries including automotive, electronics, and offshore energy [10]. Financial Performance - The company generated sales of $2,333.2 million in 2023 [10]. Investment Ratings - Element Solutions is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B [11]. - The company has a Momentum Style Score of A, indicating strong upward price movement, with shares up 11.2% over the past four weeks [11]. Earnings Estimates - One analyst has revised their earnings estimate higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0 to $1.40 per share [11]. - Element Solutions has an average earnings surprise of 3%, suggesting a positive trend in earnings performance [11]. Investment Consideration - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Element Solutions is recommended for investors' consideration [12].

Core Viewpoint - Element Solutions (ESI) has improved its guidance for Q2'24 and the full year, driven by stronger conditions in its electronics business, particularly in wafer-level packaging and circuitry [13]. Group 1: Business Performance and Outlook - ESI's Q2'24 EBITDA target has been raised to $135 million from $125 million, with a full-year target of $530 million to $545 million, up from $515 million to $530 million [13]. - The electronics segment showed overall revenue growth of 4%, with Circuitry up 8% and Semiconductor up 11% [13]. - Despite challenges in the auto sector, which accounts for about 25% of ESI's business, the company remains well-positioned for long-term growth trends such as vehicle electrification and lightweighting [7][8]. Group 2: Market Challenges - The auto sector is experiencing signs of deceleration, with concerns about weak sales growth in the EV space in Western countries [8]. - Construction and short-cycle industrial markets are weakening, impacting ESI's Industrial & Specialties business, which may not see much growth through Q4'24 [9]. - The overall chip demand remains shaky, although demand for advanced nodes driven by AI is strong, which could benefit ESI's wafer-level packaging segment [13][16]. Group 3: Long-Term Growth Drivers - ESI is expected to achieve around 4% annualized revenue growth, driven by new materials in circuitry, circuit board assembly, and semiconductor packaging [6]. - The company is well-leveraged to increasing complexity in semiconductor and electronics design, which will drive demand for its plating products and advanced materials [16]. - Advanced wafer-level packaging is anticipated to grow, supporting ESI's exposure to both leading-edge chip production and large-volume applications like smartphones and EVs [16]. Group 4: Financial Metrics and Valuation - Operating margins are expected to improve to the low 20% range, with adjusted EBITDA margins reaching 25% over the next three to five years [6]. - Free cash flow margins are projected to move from low double-digits to mid-teens, supporting mid-to-high single-digit annualized free cash flow growth [6]. - The fair value of ESI shares is estimated at $27 to $29 based on an EV/EBITDA approach, reflecting a forward multiple of 15x-16x [6].

Element Solutions Inc's (ESI) shares reached a fresh 52-week high of $27.08 on Jun 13, before closing at $26.75. What's Driving Element Solutions? Despite this, Element Solutions expects to achieve record adjusted EBITDA in 2024, the highest since its inception in 2019, bolstering confidence in its long-term growth potential. The company has increased its 2024 adjusted EBITDA forecast from a range of $515 million to $530 million to a revised range of $530 million to $545 million. The company also projects 2 ...

Element Solutions (ESI) shares ended the last trading session 13.6% higher at $26.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.2% gain over the past four weeks. ESI's stock popped after the company raised its guidance for the second quarter and full-year 2024. The company now anticipates adjusted EBITDA to be approximately $135 million for the second quarter, up from $125 million expected earlier. Despite ...

Core Insights - Element Solutions Inc. (ESI) has revised its guidance upward for both the second quarter and full year of 2024, expecting adjusted EBITDA of approximately $135 million for Q2, an increase from the previous estimate of $125 million [1] - The full-year 2024 adjusted EBITDA forecast has been raised from a range of $515 million to $530 million to a new range of $530 million to $545 million, with adjusted EPS projected to be between $1.40 and $1.46 [2] - Despite a weaker industrial environment, ESI anticipates achieving record adjusted EBITDA in 2024, the highest since the company's inception in 2019, indicating strong long-term growth prospects [3] Financial Performance - ESI's shares have increased by 24.4% over the past year, contrasting with a 13% decline in the industry [4] - In the first quarter of 2024, ESI reported adjusted earnings of 34 cents per share, exceeding the Zacks Consensus Estimate of 32 cents, with net sales of $575 million remaining flat year-over-year [8] Business Segments - The electronics business is performing well, with profitability improving, particularly in the wafer level packaging and circuitry segments, which have seen significant customer growth recently [7]

A month has gone by since the last earnings report for Element Solutions (ESI) . Shares have added about 4.1% 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 catalysts. Element's Q1 Earnings Surpass Estimat ...

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 March 31, 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) Delaware 37-1744899 (State or other jur ...

EXHIBIT 99.1 Element Solutions Inc Announces 2024 First Quarter Financial Results Miami, Fla., April 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 months ended March 31, 2024. Executive Commentary President and Chief Executive Officer Benjamin Gliklich commented, "Element Solutions executed well this quarter in recovering electronics markets. Our ongoing investment ...

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 ...