Element Solutions (NYSE:ESI) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Element Solutions exceeded quarterly earnings expectations, reporting $0.47 in EPS versus the $0.43 consensus estimate. Revenue reached $977.90 million, also above analysts’ $873.19 million forecast.
• The company paid a quarterly dividend of $0.08 per share, equivalent to an annualized $0.32 dividend and a 0.8% yield.
• Analyst sentiment remains positive, with a consensus “Buy” rating and an average price target of $43.00, while institutional investors own 92.32% of the stock.

Element Solutions (NYSE:ESI - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.04, FiscalAI reports. The firm had revenue of $977.90 million for the quarter, compared to the consensus estimate of $873.19 million. Element Solutions had a net margin of 5.32% and a return on equity of 14.19%.

Element Solutions Stock Performance

ESI stock traded up $0.39 on Monday, reaching $37.83. The company's stock had a trading volume of 7,184,533 shares, compared to its average volume of 3,549,568. Element Solutions has a 52 week low of $22.63 and a 52 week high of $49.25. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.68 and a quick ratio of 1.91. The company has a market capitalization of $9.21 billion, a P/E ratio of 61.01, a price-to-earnings-growth ratio of 1.30 and a beta of 1.23. The firm has a fifty day moving average of $42.04 and a two-hundred day moving average of $36.95.

Element Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Monday, June 1st. Element Solutions's dividend payout ratio is 51.61%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ESI. T. Rowe Price Investment Management Inc. lifted its holdings in Element Solutions by 13.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 11,119,999 shares of the company's stock worth $277,889,000 after purchasing an additional 1,298,273 shares during the period. Invesco Ltd. increased its stake in Element Solutions by 43.6% during the 4th quarter. Invesco Ltd. now owns 7,069,238 shares of the company's stock valued at $176,660,000 after buying an additional 2,146,512 shares during the period. Mercer Global Advisors Inc. ADV raised its position in shares of Element Solutions by 61.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 34,993 shares of the company's stock worth $874,000 after buying an additional 13,272 shares in the last quarter. XTX Topco Ltd raised its position in shares of Element Solutions by 199.6% during the 4th quarter. XTX Topco Ltd now owns 80,781 shares of the company's stock worth $2,019,000 after buying an additional 53,819 shares in the last quarter. Finally, Tudor Investment Corp ET AL acquired a new stake in shares of Element Solutions in the 4th quarter worth approximately $267,000. Institutional investors and hedge funds own 92.32% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on ESI shares. Wall Street Zen upgraded Element Solutions from a "hold" rating to a "buy" rating in a research note on Monday, April 20th. Weiss Ratings reiterated a "hold (c)" rating on shares of Element Solutions in a research report on Tuesday, May 19th. Seaport Research Partners reissued a "buy" rating and issued a $49.00 price target on shares of Element Solutions in a report on Tuesday, May 5th. Truist Financial boosted their price objective on Element Solutions from $47.00 to $48.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Finally, Mizuho restated a "neutral" rating and set a $45.00 price objective (down from $54.00) on shares of Element Solutions in a research note on Tuesday, July 14th. Three equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Element Solutions presently has a consensus rating of "Buy" and an average price target of $43.00.

Element Solutions Company Profile

Element Solutions Inc is a global specialty chemicals company that develops and supplies highly engineered chemistries to performance-driven end markets. The company's solutions serve customers across the electronics, energy, transportation, consumer and industrial sectors, with a particular emphasis on electronics chemicals, metal plating, and industrial coatings additives.

In the electronics market, Element Solutions provides a range of plating and surface-treatment chemistries used in the manufacture of printed circuit boards, semiconductor devices, and advanced display technologies.

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