Element Solutions (NYSE:ESI) Posts Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Element Solutions beat quarterly earnings expectations: The company reported EPS of $0.50 versus the $0.48 consensus estimate, while revenue of $995.3 million exceeded expectations of $964.23 million.
• Shares rose to $36.27 following the results, though the stock remains below its 200-day moving average of $38.90 and has traded between $22.86 and $49.25 over the past year.
• Analysts remain bullish on ESI: The stock carries a consensus “Buy” rating with a $46.18 price target, and the company pays a quarterly dividend of $0.08 per share, yielding approximately 0.9%.

Element Solutions (NYSE:ESI - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.48 by $0.02, FiscalAI reports. The business had revenue of $995.30 million during the quarter, compared to the consensus estimate of $964.23 million. Element Solutions had a net margin of 5.67% and a return on equity of 14.88%.

Element Solutions Price Performance

ESI traded up $0.60 during midday trading on Wednesday, reaching $36.27. 3,962,293 shares of the company's stock were exchanged, compared to its average volume of 3,789,878. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.91 and a quick ratio of 2.11. The stock has a market capitalization of $8.84 billion, a PE ratio of 49.01, a P/E/G ratio of 1.32 and a beta of 1.26. The business's 50-day moving average price is $35.69 and its 200 day moving average price is $38.90. Element Solutions has a 1-year low of $22.86 and a 1-year high of $49.25.

Element Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a dividend of $0.08 per share. The ex-dividend date was Tuesday, September 1st. This represents a $0.32 dividend on an annualized basis and a yield of 0.9%. Element Solutions's payout ratio is presently 43.24%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ESI. Barclays started coverage on shares of Element Solutions in a report on Monday, October 12th. They set an "overweight" rating and a $53.00 price objective on the stock. Jefferies Financial Group began coverage on shares of Element Solutions in a report on Wednesday, September 2nd. They issued a "buy" rating and a $55.00 target price for the company. Bank of America started coverage on shares of Element Solutions in a report on Tuesday, September 1st. They issued a "buy" rating and a $42.00 target price for the company. William Blair set a $48.00 price target on shares of Element Solutions in a research report on Friday, August 28th. Finally, Freedom Capital raised Element Solutions from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 28th. Four investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $46.18.

About Element Solutions

Element Solutions Inc NYSE: ESI is a specialty chemicals company that develops and produces materials used in electronics manufacturing and a range of industrial applications. Its products are designed to support processes such as printed circuit board fabrication, semiconductor packaging, electronic assembly, metal finishing, and surface treatment.

Through its electronics-focused businesses, including MacDermid Alpha Solutions, the company supplies solder materials, electronic assembly chemicals, circuit board materials, and semiconductor packaging solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.