Element Solutions Inc Just Beat EPS By 62%: Here's What Analysts Think Will Happen Next

Element Solutions Inc (NYSE:ESI) just released its latest first-quarter results and things are looking bullish. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 2 warning signs about Element Solutions. View them for free.

After the latest results, the consensus from Element Solutions' ten analysts is for revenues of US$2.41b in 2025, which would reflect a discernible 2.6% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to decrease 5.4% to US$1.11 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.43b and earnings per share (EPS) of US$1.09 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Element Solutions

With no major changes to earnings forecasts, the consensus price target fell 6.2% to US$27.17, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Element Solutions analyst has a price target of US$31.00 per share, while the most pessimistic values it at US$23.00. This is a very narrow spread of estimates, implying either that Element Solutions is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 4.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Element Solutions is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Element Solutions' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Element Solutions analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Element Solutions you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.