Benzinga | Aug 5, 2021 11:08AM EDT

Element Solutions's Earnings Outlook

Element Solutions (NYSE:ESI) unveils its next round of earnings this Wednesday, July 28. Get prepared with Benzinga's ultimate preview for Element Solutions's Q2 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.34 and sales around $542.37 million. In the same quarter last year, Element Solutions reported earnings per share of $0.18 on sales of $387.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 88.89%. Revenue would be up 40.15% on a year-over-year basis. Element Solutions's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.34 0.31 0.28 0.20 0.14EPS Actual 0.35 0.37 0.31 0.22 0.18Revenue Estimate 542.37 M 505.26 M 495.11 M 439.95 M 377.89 MRevenue Actual 586.60 M 550.10 M 536.60 M 477.50 M 387.00 M

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 100.26%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Element Solutions is scheduled to hold the call at 08:30:00 ET and can be accessed here.