Element Solutions (ESI) Rallies 15% in 6 Months: Here's Why

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]