Element Solutions (ESI) Gains 12% in 6 Months: What's Driving It?

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$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$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]