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Investing.com - Element Solutions (NYSE:ESI) stock received a boost after Truist Securities reiterated its Buy rating and $24.00 price target following the company’s second-quarter pre-announcement. According to InvestingPro data, the stock is currently trading at $24.62, with analysts’ targets ranging from $24 to $31.
Element Solutions pre-announced second-quarter adjusted EBITDA of $135 million, exceeding both Truist’s estimate of $125 million and consensus expectations of $124 million, driven by strength in its high-margin Electronics business. The company maintains strong profitability metrics, with InvestingPro analysis showing a healthy gross profit margin of 42% and eight key financial health indicators suggesting GREAT overall performance.
The company raised its full-year adjusted EBITDA guidance to $530 million-$550 million from its previous range of $520 million-$540 million, with the new midpoint surpassing analyst estimates. This guidance aligns with the company’s track record of profitability, supported by its impressive PEG ratio of 0.18, indicating attractive valuation relative to growth.
Truist noted that demand strength appears particularly robust in growth markets including data centers and advanced semiconductor packaging, with incremental capacity additions in the supply chain suggesting sustainable demand rather than trade-related pull-forward.
The company is also benefiting from recent foreign exchange fluctuations, while pricing and productivity actions have provided support for its industrial-exposed businesses, according to the pre-announcement.
In other recent news, Element Solutions Inc announced an increase in its full-year 2025 adjusted EBITDA guidance to between $530 million and $550 million, up from the previous range of $520 million to $540 million. This revision follows strong performance in data center-related markets and favorable currency movements. For the second quarter, the company now anticipates net income of $45 million to $55 million and adjusted EBITDA of approximately $135 million, surpassing earlier guidance. Additionally, Element Solutions reported first-quarter 2025 earnings per share of $0.34, exceeding the forecast of $0.33, and revenue of $594 million, which was above the expected $574.2 million.
Mizuho (NYSE:MFG) has raised its price target for Element Solutions stock to $24 from $23 while maintaining an Outperform rating, citing strong performance in the electronics segment. The firm noted that foreign exchange impacts, previously unfavorable, are now providing a modest tailwind. Mizuho’s estimates for the second quarter remain at $124 million in EBITDA and $0.33 earnings per share. Despite economic uncertainties, Element Solutions continues to deliver solid outcomes, supported by its diversified manufacturing footprint and strong customer engagement.
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