NYSE$ESI
Element Solutions Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Element Solutions reported a 15% increase in net sales and adjusted EPS of $0.38.
Element Solutions Inc announced its Q2 2022 financial results, with net sales increasing by 15% to $677 million and adjusted EPS rising to $0.38. The company's performance was driven by durable growth in end-markets and solid execution against strategies, leading to above-market sales growth and double-digit constant currency adjusted EBITDA growth.
- Net sales increased by 15% to $677 million, with organic net sales up by 6%.
- GAAP diluted EPS was $0.25, while adjusted EPS reached $0.38.
- Net income was reported at $64 million.
- Adjusted EBITDA grew by 13% on a constant currency basis, reaching $140 million.
Headline financials
Revenue & EPS history
Element Solutions · Revenue · Quarterly
$677M
Revenue by segment
Element Solutions · $677M total across 2 segments · Q2 2022
- Electronics$439M+14.9%64.8%
- Specialties$238M+16.1%35.2%
Forward guidance
Element Solutions updated its full-year 2022 adjusted EBITDA guidance to a range of $565 million to $575 million to reflect translational foreign exchange headwind. Full year constant currency adjusted EBITDA growth expectations are modestly higher than prior quarter guidance. The Company now expects full-year 2022 adjusted EPS of $1.52 to $1.55 and free cash flow of approximately $270 million. For the third quarter of 2022, adjusted EBITDA is expected to be approximately $140 million.
Tailwinds
- Full year constant currency adjusted EBITDA growth expectations are modestly higher than prior quarter guidance.
- The Company now expects full-year 2022 adjusted EPS of $1.52 to $1.55.
- The Company expects free cash flow of approximately $270 million.
- For the third quarter of 2022, adjusted EBITDA is expected to be approximately $140 million.
- The Company expects 12% reported dollar and greater than 20% constant currency adjusted EBITDA growth in the second half of 2022.
Headwinds
- The Company updated its financial guidance for adjusted EBITDA to a range of $565 million to $575 million to reflect translational foreign exchange headwind.
- The rapid rise in the U.S. dollar over the last 3 months has created material foreign exchange translation headwinds.
- The company now expects a greater than $35 million year-over-year headwind to full year 2022 adjusted EBITDA due to FX translation, as opposed to the $20 million they had expected at the end of Q1 2022.
- Global macro conditions are deteriorating.
- The automotive business continued to suffer from supply chain disruptions.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+0.1%
Avg return
Earnings day
+1.7%
Avg return
5 days after
+1.3%
Avg return
30 days after
52%
26 / 50 earnings
Positive
+14.9%
Q3 2016
Best reaction
-9.9%
Q2 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.5% | +10.3% | +9.4% | |
| Q4 2025 | +4.2% | +11.9% | -3.9% | |
| Q3 2025 | +0.7% | +3.4% | -1.1% | |
| Q1 2025 | +7.2% | +5.3% | +11.3% | |
| Q4 2024 | +4.4% | -0.5% | -4.4% | |
| Q3 2024 | +2.7% | +0.9% | +5.6% | |
| Q2 2024 | -3.1% | -6.6% | -2.6% | |
| Q1 2024 | -3.0% | -0.1% | -0.4% | |
| Q4 2023 | -3.6% | -2.0% | +3.2% | |
| Q3 2023 | -0.3% | -0.8% | +12.3% | |
| Q2 2023 | +3.6% | +5.4% | +1.6% | |
| Q1 2023 | +1.7% | +4.5% | +6.0% | |
| Q4 2022 | +1.1% | +2.0% | -8.8% | |
| Q3 2022 | -1.2% | -2.7% | +10.0% | |
| Q2 2022 | +2.4% | +4.9% | +1.6% | |
| Q1 2022 | +5.4% | +1.9% | +5.3% | |
| Q4 2021 | -1.4% | +4.4% | -6.2% | |
| Q3 2021 | +0.4% | +0.9% | +6.7% | |
| Q2 2021 | +0.6% | +0.9% | +0.7% | |
| Q1 2021 | +4.4% | +6.6% | +13.8% | |
| Q4 2020 | -3.4% | +5.1% | +4.0% | |
| Q3 2020 | -6.9% | -4.2% | +14.0% | |
| Q2 2020 | -2.4% | -0.6% | -4.9% | |
| Q1 2020 | +1.1% | +3.1% | +10.2% | |
| Q4 2019 | -3.0% | +0.5% | -24.8% | |
| Q3 2019 | +2.2% | +3.3% | -3.4% | |
| Q2 2019 | +1.3% | +1.3% | +0.1% | |
| Q1 2019 | +3.4% | +2.9% | -12.9% | |
| Q4 2018 | -4.6% | -2.9% | -14.7% | |
| Q3 2018 | +1.0% | +1.7% | +8.8% | |
| Q2 2018 | +0.7% | +1.8% | +9.0% | |
| Q1 2018 | +1.0% | +1.9% | +17.7% | |
| Q4 2017 | -1.2% | +2.7% | -8.9% | |
| Q3 2017 | -2.0% | -1.6% | -9.5% | |
| Q2 2017 | -7.4% | -9.3% | -16.2% | |
| Q1 2017 | -2.3% | -2.0% | -7.5% | |
| Q4 2016 | +1.3% | -0.2% | -1.5% | |
| Q3 2016 | +14.9% | +18.9% | +28.4% | |
| Q2 2016 | -2.8% | -5.5% | +1.2% | |
| Q1 2016 | +8.9% | — | — | |
| Q4 2015 | -1.3% | — | — | |
| Q3 2015 | -6.6% | — | — | |
| Q2 2015 | -9.9% | — | — | |
| Q1 2015 | -5.8% | — | — | |
| Q4 2014 | -3.5% | — | — | |
| Q3 2014 | +1.5% | — | — | |
| Q2 2014 | +4.4% | — | — | |
| Q1 2014 | +3.6% | — | — | |
| Q4 2013 | -0.4% | — | — | |
| Q3 2013 | -2.1% | — | — | |
| Q2 2013 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q4 2012 | — | — | — | |
| Q3 2012 | — | — | — |
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