Equity Profile

ESI

Element Solutions Inc

MaterialsSpecialty Chemicals$9.7B

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 materials that support technology and manufacturing, which are essential for economic growth.

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 increase 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, beating estimates by 7.89%. However, the stock declined by 3.94% the following day, indicating mixed investor sentiment despite the earnings beat.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Element Solutions are mixed as the company has a strong track record of beating EPS estimates, but recent stock reactions have been negative post-earnings.

Bull Case

The bullish perspective hinges on continued strong demand for specialty chemicals, leading to higher-than-expected revenue and margin growth.

Bear Case

Conversely, the bearish view is based on potential supply chain issues and rising costs that could pressure margins and hinder growth.

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 history of beating EPS estimates, this figure will be crucial in determining market sentiment and stock movement.

How is Element Solutions addressing rising input costs?

With potential inflationary pressures, the company's strategy to manage costs will be critical for maintaining margins and profitability.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Element Solutions' ability to manage costs effectively while maintaining growth, especially given its history of EPS beats.

Supporting Evidence

The company has consistently beaten EPS estimates, suggesting stronger operational performance than anticipated.

Options pricing indicates a significant expected move, which may reflect broader market uncertainty rather than company-specific issues.

Key Risk

If the EPS comes in below $0.38, it could validate bearish concerns about margin pressures.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around the company's ability to sustain growth amidst rising costs and market competition.

Bull Confirmed If

An EPS of $0.45 or higher would confirm strong operational performance and market demand.

Bear Confirmed If

An EPS below $0.38 would signal potential issues in profitability and market challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±18.99%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant potential move, indicating uncertainty or volatility expected 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 4.7%, with a raw directional average of +0.6% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If ESI beats expectations, history suggests a potential average move of -0.96%, indicating that the stock may initially rise but could face selling pressure.

In-Line / Cautious

If results are in line with expectations, the market may react cautiously, leading to a muted response as investors await further guidance.

Miss

A miss could lead to a decline in stock price, with history suggesting an average drop of +1.00% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies in response to inflation.
2Details on revenue growth drivers, particularly in key markets.
3Insights into supply chain stability and its impact on production.
4Management's outlook on future demand for specialty chemicals.
5Any commentary on competitive positioning within 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 increase 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

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Element Solutions are mixed as the company has a strong track record of beating EPS estimates, but recent stock reactions have been negative post-earnings.

Bull Case

The bullish perspective hinges on continued strong demand for specialty chemicals, leading to higher-than-expected revenue and margin growth.

Bear Case

Conversely, the bearish view is based on potential supply chain issues and rising costs that could pressure margins and hinder growth.

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 history of beating EPS estimates, this figure will be crucial in determining market sentiment and stock movement.

How is Element Solutions addressing rising input costs?

With potential inflationary pressures, the company's strategy to manage costs will be critical for maintaining margins and profitability.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Element Solutions' ability to manage costs effectively while maintaining growth, especially given its history of EPS beats.

Supporting Evidence

The company has consistently beaten EPS estimates, suggesting stronger operational performance than anticipated.

Options pricing indicates a significant expected move, which may reflect broader market uncertainty rather than company-specific issues.

Key Risk

If the EPS comes in below $0.38, it could validate bearish concerns about margin pressures.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around the company's ability to sustain growth amidst rising costs and market competition.

Bull Confirmed If

An EPS of $0.45 or higher would confirm strong operational performance and market demand.

Bear Confirmed If

An EPS below $0.38 would signal potential issues in profitability and market challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±18.99%

Historical Avg

±1.4%

Pricing rich

The options market is pricing in a significant potential move, indicating uncertainty or volatility expected 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 ESI beats expectations, history suggests a potential average move of -0.96%, indicating that the stock may initially rise but could face selling pressure.

In-Line / Cautious

If results are in line with expectations, the market may react cautiously, leading to a muted response as investors await further guidance.

Miss

A miss could lead to a decline in stock price, with history suggesting an average drop of +1.00% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies in response to inflation.
2Details on revenue growth drivers, particularly in key markets.
3Insights into supply chain stability and its impact on production.
4Management's outlook on future demand for specialty chemicals.
5Any commentary on competitive positioning within the industry.