NYSE$ESI

Element Solutions Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced financial results for Q4 2021, showing increased net sales but decreased GAAP diluted EPS and net income compared to Q4 2020.

Element Solutions Inc reported a 21% increase in net sales to $647 million for Q4 2021. However, GAAP diluted EPS decreased to $0.02, and net income fell to $6 million, compared to the same period last year. Adjusted EPS remained the same at $0.31.

  • Net sales increased by 21% compared to Q4 2020, reaching $647 million.
  • GAAP diluted EPS decreased to $0.02, a significant drop from $0.12 in Q4 2020.
  • Net income decreased to $6 million, compared to $30 million in the same quarter of the previous year.
  • Adjusted EPS remained flat at $0.31.

Headline financials

Total Revenue

$647M

Previous: $537M+20.6%
EPS (adj)

$0.31

Previous: $0.31+0.0%
Total Organic Net Sales Growth

2.0%

Previous: 10.0%-80.0%
Electronics Organic Net Sales Growth

1.0%

Previous: 16.0%-93.8%
Capital Expenditures

$18.6M

Previous: $7.1M+162.0%
Free Cash Flow

$307M

Previous: $269M+14.3%
Net Income

$6M

Previous: $30M-80.0%
Operating Income

$60.5M

Previous: $80M-24.4%
Gross Profit

$237M

Previous: $223M+6.3%
Cash & Equivalents

$330M

Previous: $292M+13.1%
Total Assets

$5.14B

Previous: $4.48B+14.6%
Stock-Based Comp

$6.3M

Previous: $600K+950.0%

Revenue & EPS history

Element Solutions · Revenue · Quarterly

$647M

Q4 2021+20.6%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Element Solutions · $647M total across 2 segments · Q4 2021

  • Electronics
    $400M+16.6%
  • Specialties
    $247M+28.0%

Forward guidance

Element Solutions anticipates adjusted EBITDA between $575 million and $590 million and adjusted EPS between $1.55 and $1.60 for the full year 2022. The company also expects free cash flow in the range of $310 million to $325 million.

Tailwinds

  • Expects solid organic growth in 2022.
  • Contribution from Coventya's synergies to boost adjusted EBITDA.
  • Adjusted EBITDA is projected to increase by 13% to 16% on a constant currency basis.
  • Adjusted EPS is expected to grow between 12% and 16%.
  • Expects full year 2022 free cash flow generation of between $310 million and $325 million.

Headwinds

  • First quarter 2022 adjusted EBITDA is expected to be approximately flat year-on-year at constant currency.
  • Unusual macro backdrop of record demand.
  • Significant disruptions in raw material supply.
  • Logistics challenges.
  • Labor shortages.

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 Q4 2021

Historical avgQ4 2021

+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

Earnings price reactions
QuarterReport dateReaction (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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