Element Solutions (NYSE:ESI) Releases Quarterly Earnings Results

Key Points

• Element Solutions reported quarterly earnings of $0.37 EPS, exceeding expectations of $0.36 EPS and showing a 2.0% year-over-year revenue increase.
• The company declared a quarterly dividend of $0.08 per share, reflecting an annualized yield of 1.38% and a payout ratio of 26.89%.
• Several analysts have upgraded Element Solutions' ratings and price targets, with a consensus rating of "Moderate Buy" and a target price of $27.13.

Element Solutions (NYSE:ESI - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.36 by $0.01, Zacks reports. Element Solutions had a return on equity of 14.40% and a net margin of 9.66%. The firm had revenue of $625.20 million during the quarter, compared to analysts' expectations of $587.45 million. During the same period last year, the firm posted $0.36 EPS. The business's revenue was up 2.0% on a year-over-year basis.

Element Solutions Trading Down 2.0%

Element Solutions stock traded down $0.47 during trading hours on Friday, reaching $23.13. 3,607,339 shares of the company's stock were exchanged, compared to its average volume of 2,675,973. The company has a quick ratio of 3.16, a current ratio of 3.95 and a debt-to-equity ratio of 0.64. The firm's 50 day simple moving average is $22.88 and its 200 day simple moving average is $23.19. The firm has a market capitalization of $5.61 billion, a PE ratio of 23.13, a PEG ratio of 1.67 and a beta of 1.23. Element Solutions has a twelve month low of $16.77 and a twelve month high of $29.78.

Element Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 16th. Shareholders of record on Monday, June 2nd were issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Monday, June 2nd. Element Solutions's dividend payout ratio (DPR) is presently 32.00%.

Institutional Trading of Element Solutions

Several large investors have recently made changes to their positions in the company. Focus Partners Wealth acquired a new position in Element Solutions during the 1st quarter valued at about $400,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Element Solutions by 4.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 872,451 shares of the company's stock valued at $19,726,000 after purchasing an additional 37,204 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Element Solutions by 60.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,894,061 shares of the company's stock valued at $42,825,000 after purchasing an additional 712,466 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in Element Solutions by 339.3% during the 1st quarter. Millennium Management LLC now owns 446,622 shares of the company's stock valued at $10,098,000 after purchasing an additional 344,950 shares during the last quarter. 92.32% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on ESI shares. Bank of America raised Element Solutions from a "neutral" rating to a "buy" rating and lowered their target price for the company from $29.00 to $24.00 in a research note on Tuesday, April 15th. Mizuho lifted their target price on Element Solutions from $24.00 to $27.00 and gave the company an "outperform" rating in a research report on Tuesday, July 15th. BMO Capital Markets lowered their price target on Element Solutions from $34.00 to $30.00 and set an "outperform" rating on the stock in a research report on Friday, April 25th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $27.00 target price (up previously from $24.00) on shares of Element Solutions in a research report on Tuesday, July 15th. Finally, KeyCorp boosted their price target on Element Solutions from $29.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday. Two equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $27.38.

About Element Solutions

Element Solutions Inc operates as a specialty chemicals company in the United States, China, and internationally. The company operates in two segments, Electronics, and Industrial & Specialty. The Electronics segment researches, formulates, and sells specialty chemicals and materials for various types of electronics hardware products.