Equity Profile

ESI

Element Solutions Inc

MaterialsSpecialty Chemicals$8.7B

Jul30Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Element Solutions Inc (ESI) operates in the specialty chemicals sector, providing innovative solutions for various industries. With a market cap of $10 billion, the company plays a crucial role in supporting advancements in technology and manufacturing processes.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and drive sales, which is vital for long-term success.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ESI Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+0.46%

Avg Stock Reaction

-0.72%

Last Quarter Recap

In Q1-2026, Element Solutions reported an EPS of $0.41, surpassing estimates by nearly 8%. However, the stock declined by almost 4% the following day, indicating mixed market reactions.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Element Solutions are cautious, given the lack of analyst estimates and management guidance. Investors are keen to see if the company can maintain its positive EPS trend.

Bull Case

If Element Solutions continues to beat EPS estimates and demonstrates strong revenue growth, it could signal robust demand for its products and lead to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of declining margins, it could raise concerns about its competitive position and lead to a negative market response.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

Given the company's track record of beating EPS estimates, this number will be crucial in determining market sentiment.

How is the gross margin trending this quarter?

Gross margin trends will provide insight into the company's cost management and pricing power, which are vital for future profitability.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating Element Solutions' ability to sustain its EPS growth despite potential headwinds in the specialty chemicals sector.

Supporting Evidence

The company has consistently beaten EPS estimates, indicating strong operational performance.

Options pricing suggests a significant move, which could reflect investor anticipation of positive news.

The historical trend shows that the stock often reacts positively to earnings beats, despite initial declines.

Key Risk

If the EPS comes in below $0.38, it could challenge the current positive sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on the company's ability to maintain profitability while navigating market challenges.

Bull Confirmed If

A gross margin of 30% or higher would confirm strong cost management and pricing power.

Bear Confirmed If

A decline in EPS below $0.38 would raise concerns about profitability and market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±12.59%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±12.6% while ESI has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

52.1%

Calls (26K)P/C Ratio: 0.17Puts (4K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Materials

n=30

Fade rate: 13 of 30 (43%)

This setup has occurred 30 times across Materials in the last 2 years. 13 of 30 faded and 17 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.8%, with a raw directional average of +0.2% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Element Solutions beats expectations, history suggests the stock could rise by around 1.43% on the first day, confirming strong demand and profitability.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may see muted movement as investors weigh future prospects.

Miss

Should the company miss expectations, history indicates a potential drop of about 1.00%, raising concerns about its competitive position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on gross margins.
2Insights into demand trends for specialty chemicals in key markets.
3Management's outlook on future revenue growth and market conditions.
4Details on any new product launches or innovations.
5Clarification on the company's competitive positioning in the industry.

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Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and drive sales, which is vital for long-term success.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ESI Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+0.46%

Avg Stock Reaction

-0.72%

Last Quarter Recap

In Q1-2026, Element Solutions reported an EPS of $0.41, surpassing estimates by nearly 8%. However, the stock declined by almost 4% the following day, indicating mixed market reactions.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Element Solutions are cautious, given the lack of analyst estimates and management guidance. Investors are keen to see if the company can maintain its positive EPS trend.

Bull Case

If Element Solutions continues to beat EPS estimates and demonstrates strong revenue growth, it could signal robust demand for its products and lead to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of declining margins, it could raise concerns about its competitive position and lead to a negative market response.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

Given the company's track record of beating EPS estimates, this number will be crucial in determining market sentiment.

How is the gross margin trending this quarter?

Gross margin trends will provide insight into the company's cost management and pricing power, which are vital for future profitability.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating Element Solutions' ability to sustain its EPS growth despite potential headwinds in the specialty chemicals sector.

Supporting Evidence

The company has consistently beaten EPS estimates, indicating strong operational performance.

Options pricing suggests a significant move, which could reflect investor anticipation of positive news.

The historical trend shows that the stock often reacts positively to earnings beats, despite initial declines.

Key Risk

If the EPS comes in below $0.38, it could challenge the current positive sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on the company's ability to maintain profitability while navigating market challenges.

Bull Confirmed If

A gross margin of 30% or higher would confirm strong cost management and pricing power.

Bear Confirmed If

A decline in EPS below $0.38 would raise concerns about profitability and market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±12.59%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±12.6% while ESI has averaged ±1.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

52.1%

Calls (26K)P/C Ratio: 0.17Puts (4K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Materials

n=30

Fade rate: 13 of 30 (43%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Element Solutions beats expectations, history suggests the stock could rise by around 1.43% on the first day, confirming strong demand and profitability.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may see muted movement as investors weigh future prospects.

Miss

Should the company miss expectations, history indicates a potential drop of about 1.00%, raising concerns about its competitive position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on gross margins.
2Insights into demand trends for specialty chemicals in key markets.
3Management's outlook on future revenue growth and market conditions.
4Details on any new product launches or innovations.
5Clarification on the company's competitive positioning in the industry.