NYSE$ESI
Element Solutions Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Announced third quarter financial results, revealing flat net sales and increased organic net sales.
Element Solutions reported approximately flat net sales of $619 million compared to the third quarter of last year, but organic net sales increased by 5%. GAAP diluted EPS was $0.22, up from $0.15 in the same period last year, and adjusted EPS was $0.36, compared to $0.34 in the prior year. The company reported a net income of $53 million, compared to $36 million in the same period last year. Free cash flow was $116 million, an increase of 42% from the third quarter last year.
- Net sales were $619 million, approximately flat year-over-year, with a 5% increase on an organic basis.
- GAAP diluted EPS was $0.22, compared to $0.15 in the same period last year; adjusted EPS was $0.36, as compared to $0.34 in the same period last year.
- Net income was $53 million, as compared to $36 million in the same period last year.
- Free cash flow was $116 million, an increase of 42% from the third quarter last year.
Headline financials
Revenue & EPS history
Element Solutions · Revenue · Quarterly
$619M
Revenue by segment
Element Solutions · $619M total across 2 segments · Q3 2022
- Electronics$388M-2.8%62.7%
- Specialties$231M+6.0%37.3%
Forward guidance
The combination of weak electronics markets, economic stress in Europe and record U.S. dollar strength will drive a greater than typical sequential decline in the fourth quarter. The company updated its financial guidance for adjusted EBITDA in a range of $525 million to $530 million to reflect increased translational foreign exchange headwinds and lowered macro-economic growth assumptions. The Company also now expects full-year 2022 adjusted EPS of $1.40 to $1.42 and free cash flow of approximately $250 million.
Tailwinds
- Customers remain highly engaged with our commercial and technical teams.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in semiconductor assembly.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in high-end circuit board.
- We have seen an acceleration in interest in several of our newer technology offerings, including products in sustainable industrial surface treatment amongst others.
- The growth opportunities in markets and applications for power electronics, 5G technologies and more sustainable chemistry should be substantial over time.
Headwinds
- Weak electronics markets
- Economic stress in Europe
- Record U.S. dollar strength
- Greater than typical sequential decline in the fourth quarter.
- Increased translational foreign exchange headwinds and lowered macro-economic growth assumptions.
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 Q3 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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