Element Solutions (ESI) Q1 Earnings Top, Sales Lag Estimates
Zacks Investment Research | May 08, 2019 07:22AM ET
Element Solutions Inc (NYSE:ESI) recorded net loss from continuing operations of $3.5 million or 2 cents per share in first-quarter 2019, narrower than a loss of $8.9 million or 4 cents in the year-ago quarter.
Adjusted earnings per share (EPS) for the quarter were 20 cents, which surpassed the Zacks Consensus Estimate of 18 cents.
The specialty chemicals company generated net sales of $459.8 million, down 6.6% year over year. The figure lagged the Zacks Consensus Estimate of $463 million. Organic net sales, barring the impact of currency changes, specific pass-through metal prices and acquisitions, fell 3%.
Adjusted EBITDA came in at $99 million, down 5% year over year. Adjusted EBITDA rose 1% on a constant-currency basis.
Per management, weakness in end-markets from second-half 2018 persisted in the reported quarter as reflected in the financial results.
Segment Highlights
Net sales in the Electronics segment fell 8% year over year to $266 million. Organic net sales dipped 5%. Adjusted EBITDA amounted to $56 million, down 6%.
Net sales in the Industrial & Specialty unit fell 5% to $194 million. Organic net sales were flat. Adjusted EBITDA in the segment was $42 million, down 4%.
Financial Position
As of Mar 31, 2019, Element Solutions had cash and cash equivalents of $230.4 million, down roughly 44.9% year over year. Long-term debt was $1,516.5 million at the end of the first quarter.
Outlook
The company reiterated previous guidance for 2019. It expects adjusted EPS in the range of 82-87 cents per share. Adjusted EBITDA growth is projected in the band 5-8% at constant currency. The company expects flat to 2% organic net sales growth.
Price Performance
Shares of Element Solutions have gained 3.4% in a year’s time compared with the Zacks Investment Research
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