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Cabot's (CBT) Earnings and Sales Surpass Estimates in Q3
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Cabot Corporation (CBT - Free Report) recorded third-quarter fiscal 2024 (ended Jun 30, 2024) earnings of $1.94 per share, up from the year-ago quarter's $1.43.
CBT posted adjusted earnings of $1.92 per share, up from the year-ago quarter's figure of $1.42. Adjusted earnings beat the Zacks Consensus Estimate of $1.74.
The company’s net sales in the quarter were $1,016 million, which beat the Zacks Consensus Estimate of $1,010.1 million. Net sales increased around 4.9% from the prior-year quarter.
Cabot Corporation Price, Consensus and EPS Surprise
Reinforcement Materials’ sales increased around 4% year over year to $649 million in the reported quarter. It lagged the consensus estimate of $649.6 million. Earnings before interest and tax (EBIT) in the segment were $136 million, up around 3% from the year-ago quarter. EBIT increased primarily due to greater volumes in Europe and Asia Pacific, as well as improved price and product mix in 2024 customer agreements, which were partially offset by a less favorable regional mix and higher costs. Lower volumes in the Americas owing to weather occurrences also had a negative influence on the quarter's results.
In the reported quarter, sales in the Performance Chemicals division jumped 8.1% year over year to $332 million, surpassing the consensus estimate of $311.1 million. EBIT also witnessed a substantial increase of approximately 72% to $55 million. Performance Chemicals' EBIT in the third quarter of fiscal 2024 increased year over year, owing principally to higher volumes and a more favorable product mix. Higher volumes in the specialized carbons and fumed metal oxides product lines were mainly driven by a rise in sales to automotive, infrastructure and semiconductor markets.
Financials
The company concluded the fiscal third quarter with a cash balance of $197 million. During the reported quarter, cash flows from operating activities were $207 million. Capital expenditures totaled $52 million. During the quarter, cash was also used to pay dividends of $24 million and repurchase shares of $49 million.
Outlook
CBT now anticipates fiscal 2024 adjusted EPS of $7.00 to $7.10. This range represents a 30 cents increase at the midpoint, driven by the company's expectations for improved results in the Performance Chemicals segment due to higher demand and a more favorable product mix compared to the first half of the year, as well as continued strong results in the Reinforcement Materials unit.
Price Performance
Shares of Cabot have gained 25.4% in the past year against a 10% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CBT currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , B2Gold Corp. (BTG - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 26 cents. GOLD beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B2Gold, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 8. The Zacks Consensus Estimate for BTG's second-quarter earnings is pegged at 8 cents.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.
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Cabot's (CBT) Earnings and Sales Surpass Estimates in Q3
Cabot Corporation (CBT - Free Report) recorded third-quarter fiscal 2024 (ended Jun 30, 2024) earnings of $1.94 per share, up from the year-ago quarter's $1.43.
CBT posted adjusted earnings of $1.92 per share, up from the year-ago quarter's figure of $1.42. Adjusted earnings beat the Zacks Consensus Estimate of $1.74.
The company’s net sales in the quarter were $1,016 million, which beat the Zacks Consensus Estimate of $1,010.1 million. Net sales increased around 4.9% from the prior-year quarter.
Cabot Corporation Price, Consensus and EPS Surprise
Cabot Corporation price-consensus-eps-surprise-chart | Cabot Corporation Quote
Segment Highlights
Reinforcement Materials’ sales increased around 4% year over year to $649 million in the reported quarter. It lagged the consensus estimate of $649.6 million. Earnings before interest and tax (EBIT) in the segment were $136 million, up around 3% from the year-ago quarter. EBIT increased primarily due to greater volumes in Europe and Asia Pacific, as well as improved price and product mix in 2024 customer agreements, which were partially offset by a less favorable regional mix and higher costs. Lower volumes in the Americas owing to weather occurrences also had a negative influence on the quarter's results.
In the reported quarter, sales in the Performance Chemicals division jumped 8.1% year over year to $332 million, surpassing the consensus estimate of $311.1 million. EBIT also witnessed a substantial increase of approximately 72% to $55 million. Performance Chemicals' EBIT in the third quarter of fiscal 2024 increased year over year, owing principally to higher volumes and a more favorable product mix. Higher volumes in the specialized carbons and fumed metal oxides product lines were mainly driven by a rise in sales to automotive, infrastructure and semiconductor markets.
Financials
The company concluded the fiscal third quarter with a cash balance of $197 million. During the reported quarter, cash flows from operating activities were $207 million. Capital expenditures totaled $52 million. During the quarter, cash was also used to pay dividends of $24 million and repurchase shares of $49 million.
Outlook
CBT now anticipates fiscal 2024 adjusted EPS of $7.00 to $7.10. This range represents a 30 cents increase at the midpoint, driven by the company's expectations for improved results in the Performance Chemicals segment due to higher demand and a more favorable product mix compared to the first half of the year, as well as continued strong results in the Reinforcement Materials unit.
Price Performance
Shares of Cabot have gained 25.4% in the past year against a 10% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CBT currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , B2Gold Corp. (BTG - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 26 cents. GOLD beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B2Gold, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 8. The Zacks Consensus Estimate for BTG's second-quarter earnings is pegged at 8 cents.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.