Element Solutions Inc's Upcoming Earnings: What to Expect

Element Solutions Inc's Upcoming Earnings

Element Solutions Inc (NYSE: ESI) is gearing up to announce its quarterly earnings report soon, a highly anticipated event for shareholders and investors alike. As the reporting date approaches, the excitement among market players continues to build. This report serves as a guide for those keeping an eye on Element Solutions.

Analyst Expectations for Earnings

Analysts project that Element Solutions will report an earnings per share (EPS) of $0.36. This prediction reflects optimism about the company’s growth trajectory and overall financial health.

Significance of Earnings Guidance

The earnings announcement is not just about the figures but also the guidance provided by the company. For new investors, the guidance can serve as a critical factor influencing stock price movements. Positive guidance often results in favorable reactions in the market.

Historic Earnings Performance

In the previous quarter, Element Solutions exceeded EPS expectations by $0.01, leading to a notable 6.82% increase in share price the day following the announcement. A history of beating estimates can instill confidence in current and prospective investors.

Current Stock Performance Overview

As of now, shares of Element Solutions are priced at approximately $23.17. Over the past year, the stock has seen a decline of about 6.77%. This downturn might lead long-term shareholders to approach the upcoming earnings release with a certain level of caution.

Analyst Insights and Expectations

The market sentiment surrounding Element Solutions plays a crucial role in shaping investor expectations. Analysts currently have a consensus rating of 'Outperform,' indicating confidence in the company's future performance. The average one-year price target is set at $28.0, suggesting a potential upside of 20.85%, which further highlights the optimistic forecasts held by market analysts.

Comparing Performance to Industry Peers

To better understand Element Solutions's position within the sector, it's essential to compare its future outlook with that of its peers, such as Celanese, Balchem, and Axalta Coating Systems. These comparisons help shed light on how Element Solutions stands relative to its competitors.

• Celanese is currently expected to have a neutral trajectory, with an average one-year price target of $64.6, indicating a potential upside of 178.81%.
• Balchem’s projections show a more aggressive buy recommendation with an estimated price target of $189.0, predicting a staggering 715.71% upside.
• As for Axalta Coating Systems, the analysts favor an 'Outperform' rating, with a price target of $36.71, showing a potential upside of 58.44%.

Insights from Peer Analysis

An analysis of key performance indicators among Element Solutions and its peers reveals essential takeaways. Element Solutions leads with revenue growth at 2.04%, while its gross profit of $266.40M places it at a disadvantage compared to some of its counterparts.

Understanding Element Solutions

Element Solutions Inc specializes in providing advanced chemical solutions, playing a critical role in enhancing everyday products through its unique offerings. The company operates primarily in two segments: Electronics and Industrial & Specialty. The Electronics segment, being the most significant revenue generator, focuses on developing specialty chemicals and technologies for electronic hardware manufacturing.

Key Financial Highlights of Element Solutions

Market Capitalization: The company's market cap has faced limitations relative to industry benchmarks, suggesting impactful operational dynamics.

Revenue Growth: The company has recently reported a revenue growth rate of 2.04%, demonstrating an upward trend in earnings, outpacing many competitors in the sector.

Net Margin: Element Solutions showcases a robust net margin of 7.58%, signifying its adeptness in cost management and profitability.

Return on Equity (ROE): Standing at 1.84%, the ROE illustrates the effective use of equity to generate profits.

Return on Assets (ROA): With a ROA of 0.97%, the company displays efficiency in making the most of its assets.

Debt Management: A healthy debt-to-equity ratio of 0.62 positions the company favorably among its peers, reflecting sound financial practices.

Frequently Asked Questions

What is the expected EPS for Element Solutions's upcoming earnings report?

Analysts anticipate an EPS of $0.36 for the upcoming report.

How has Element Solutions performed in the past few quarters?

The company has shown resilience, with a notable EPS beat in the last quarter resulting in a 6.82% increase in share price.

What is the current stock price for Element Solutions?

Element Solutions shares are currently trading at about $23.17.

How does Element Solutions's revenue growth compare to its peers?

Element Solutions leads with 2.04% revenue growth among its compared peers.

What guidance should investors expect from Element Solutions?

Investors are looking for positive guidance that could influence stock price movements following the earnings release.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

Contact Dylan Bailey privately here. Or send an email with ATTN: Dylan Bailey as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.