Element Solutions (ESI) Up 9.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Element Solutions (ESI). Shares have added about 9.8% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Element Solutions’ Q2 Earnings and Revenues Beat EstimatesElement Solutions recorded earnings of 20 cents per share for the second quarter of 2025 compared with 39 cents in the year-ago quarter.Barring one-time items, earnings were 37 cents per share. The figure beat the Zacks Consensus Estimate of 36 cents.The company generated net sales of $625.2 million, up 2% year over year. The figure beat the Zacks Consensus Estimate of $605 million. Organic net sales rose 6%.Strong growth in the electronics segment sales in the quarter was offset by the declines in the industrial business.Segment HighlightsNet sales in the Electronics segment rose 12% year over year to $439 million in the reported quarter. Organic net sales were up 9% from the year-ago number. The figure beat the consensus estimate of $426 million.In the Industrial & Specialty segment, net sales declined 16% year over year to $186 million, with organic net sales rising 1%. However, the figure beat the consensus estimate of $179 million.Financial PositionElement Solutions ended the quarter with cash and cash equivalents of $529.9 million, up around 47.4% from the prior quarter. Long-term debt was $1,624.5 million at the end of the quarter, up modestly from $1,623.8 million in the prior quarter.Cash from operating activities was $72.6 million, while free cash flow was $58.8 million for the reported quarter.OutlookThe company anticipates adjusted EBITDA for 2025 to be between $530 million and $550 million, with free cash flow conversion comparable to the previous year. The company forecasts adjusted EBITDA for the third quarter of 2025 to be between $140 million and $145 million.How Have Estimates Been Moving Since Then?Estimates review followed a upward path over the past two months.VGM ScoresAt this time, Element Solutions has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Element Solutions has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerElement Solutions is part of the Zacks Chemical - Specialty industry. Over the past month, RPM International (RPM), a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended May 2025 more than a month ago.RPM International reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.72 for the same period compares with $1.56 a year ago.For the current quarter, RPM International is expected to post earnings of $1.88 per share, indicating a change of +2.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for RPM International. Also, the stock has a VGM Score of C.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Element Solutions Inc. (ESI): Free Stock Analysis Report RPM International Inc. (RPM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks