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Element Solutions Inc (NYSE:ESI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$594m, some 3.0% above estimates, and statutory earnings per share (EPS) coming in at US$0.40, 62% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
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Taking into account the latest results, the current consensus, from the ten analysts covering Element Solutions, is for revenues of US$2.41b in 2025. This implies a noticeable 2.6% reduction in Element Solutions' revenue over the past 12 months. Statutory earnings per share are forecast to shrink 5.4% to US$1.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.43b and earnings per share (EPS) of US$1.09 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Element Solutions
There were no changes to revenue or earnings estimates or the price target of US$27.58, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Element Solutions at US$31.00 per share, while the most bearish prices it at US$23.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Element Solutions is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2025. This indicates a significant reduction from annual growth of 5.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.9% annually for the foreseeable future. It's pretty clear that Element Solutions' revenues are expected to perform substantially worse than the wider industry.