BOSTON, April 02, 2025 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE:CBT) announced today that it will release operating results for the second quarter of fiscal 2025 on Monday, May 5, 2025, after market close. The Company will host a conference call and live webcast to review the second quarter results beginning at 8:00 am (ET) on Tuesday, May 6, 2025. The call will be webcast by Notified and may be accessed at Cabot's website at https://cabotog.gcs-web.com/. If you are unable to participate during the live ...

Core Viewpoint - Cabot's recent earnings report shows mixed results, with net income increasing year-over-year but missing consensus estimates for both EPS and sales, leading to a decline in share price and a downward trend in estimates [2][3][8]. Financial Performance - Cabot reported a net income of $93 million or $1.67 per share for Q1 fiscal 2025, up from $50 million or $0.88 per share in the prior year [2]. - Adjusted EPS was $1.76, an increase from $1.56 year-over-year, but below the Zacks Consensus Estimate of $1.80 [2]. - Total sales were $955 million, missing the Zacks Consensus Estimate of $993 million and reflecting a year-over-year decline of approximately 0.3% [3]. Segment Highlights - Sales in the Reinforcement Materials segment decreased by 4.7% year-over-year to $611 million, missing the consensus estimate of $664.2 million [4]. - The Performance Chemicals unit saw a 9.1% increase in sales to $311 million, surpassing the Zacks Consensus Estimate of $296.1 million [5]. Financial Position - At the end of Q1, Cabot had a cash balance of $183 million, with cash flows from operating activities amounting to $124 million [6]. - Capital expenditures were $77 million, with $24 million allocated for dividends and $42 million for share repurchases during the quarter [6]. Outlook - Cabot anticipates adjusted EPS for fiscal 2025 to be between $7.40 and $7.80, considering business segment results and customer agreements [7]. - The company expects strong operating cash flow to support strategic growth investments and shareholder returns, while continuing its "Creating for Tomorrow" strategy [7]. - Estimates for the stock have trended downward, with a consensus estimate shift of -5.44% [8][11]. Investment Scores - Cabot has a Growth Score of A, a Momentum Score of C, and a Value Score of A, placing it in the top 20% for value investment strategy [10]. - The overall VGM Score is A, indicating strong potential across multiple investment strategies [10].

Group 1 - The article discusses the author's background as an equity research analyst and trader, emphasizing a blend of fundamental and technical analysis skills [1] - The author expresses a commitment to responsible investing and a willingness to explore diverse investment ideas, highlighting the dynamic nature of the investment industry [1] - The author notes a personal interest in various asset classes, including equities, currencies, and cryptocurrencies, indicating a broad investment perspective [1] Group 2 - The article includes a disclosure stating that the author has no current positions in the mentioned companies but may consider initiating a long position in the near future [1] - It clarifies that the opinions expressed are solely those of the author and do not represent the views of Seeking Alpha as a whole [2] - The article emphasizes that past performance is not indicative of future results, underscoring the inherent uncertainties in investment [2]

Financial Performance - In the first quarter of fiscal 2025, net sales and other operating revenues decreased by $3 million to $955 million compared to $958 million in the first quarter of fiscal 2024, primarily due to less favorable pricing and product mix [75]. - Gross profit increased by $17 million to $235 million in the first quarter of fiscal 2025, driven by higher volumes in both Reinforcement Materials and Performance Chemicals segments [76]. - Total segment EBIT rose to $175 million in the first quarter of fiscal 2025, compared to $163 million in the same period of fiscal 2024, reflecting improved operational performance [85]. - Net income attributable to Cabot Corporation increased to $93 million ($1.67 per diluted common share) in the first quarter of fiscal 2025, up from $50 million ($0.88 per diluted common share) in the first quarter of fiscal 2024 [83]. - Other income increased by $30 million in the first quarter of fiscal 2025, primarily due to lower foreign exchange losses in Argentina [79]. Expenses and Taxation - The effective tax rate for the first quarter of fiscal 2025 was 28%, with a provision for income taxes of $41 million, compared to a provision of $34 million in the same period of fiscal 2024 [79]. - Research and technical expenses decreased by $1 million to $14 million in the first quarter of fiscal 2025 compared to $15 million in the same period of fiscal 2024 [78]. - Selling and administrative expenses decreased by $1 million to $66 million in the first quarter of fiscal 2025 compared to $67 million in the same period of fiscal 2024 [77]. - Interest expense decreased by $4 million to $18 million in the first quarter of fiscal 2025, attributed to lower average short-term borrowings and interest rates [79]. - The company expects the operating tax rate for fiscal 2025 to be in the range of 27% to 29% [80]. Segment Performance - Reinforcement Materials sales decreased by $30 million to $611 million in Q1 fiscal 2025 compared to $641 million in Q1 fiscal 2024, primarily due to less favorable pricing and product mix [90]. - EBIT for Reinforcement Materials increased by $1 million to $130 million in Q1 fiscal 2025, driven by approximately 1% volume growth [91]. - Performance Chemicals sales increased by $26 million to $311 million in Q1 fiscal 2025, primarily due to higher volumes and favorable foreign currency translation [93]. - EBIT for Performance Chemicals increased by $11 million to $45 million in Q1 fiscal 2025, primarily due to 8% higher volumes [94]. Cash Flow and Investments - Cash provided by operating activities totaled $124 million in Q1 fiscal 2025, compared to $105 million in Q1 fiscal 2024 [103]. - Investing activities consumed $104 million in Q1 fiscal 2025, compared to $54 million in Q1 fiscal 2024, with $77 million allocated for capital expenditures [106]. - Capital expenditures for fiscal 2025 are expected to be between $250 million and $300 million for sustaining and growth-related projects [108]. - Liquidity position decreased by $118 million during the first three months of fiscal 2025, with cash and cash equivalents at $183 million and borrowing availability of $1.1 billion [97]. Future Outlook - The company anticipates modest sequential improvement in EBIT for both Reinforcement Materials and Performance Chemicals segments in Q2 fiscal 2025 [92][95]. - The company is assessing potential impacts from tariffs announced in February 2025, expecting minimal direct impact in China and Mexico [96].

CABOT EARNINGS TELECONFERENCE First Quarter - Fiscal 2025 Forward Looking Statements This presentation contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in the second quarter of and fiscal year 2025, including our expectations for performance and growth in our businesses and for adjusted earnings per share ('EPS") and adjusted earnings before interest, taxes, depreciation and amortizat ...

Financial Performance - Cabot Corporation (CBT) reported a net income of $93 million or $1.67 per share for Q1 fiscal 2025, an increase from $50 million or $0.88 per share in the same quarter last year [1] - Adjusted earnings per share (EPS) were $1.76, up from $1.56 year-over-year, but below the Zacks Consensus Estimate of $1.80 [1] - Total sales for the quarter were $955 million, missing the Zacks Consensus Estimate of $993 million and reflecting a year-over-year decline of approximately 0.3% [2] Segment Performance - Sales in the Reinforcement Materials segment decreased by 4.7% year-over-year to $611 million, missing the Zacks Consensus Estimate of $664.2 million [3] - EBIT for Reinforcement Materials increased by $1 million year-over-year, driven by volume growth and favorable pricing from customer agreements [3] - Performance Chemicals sales rose by 9.1% to $311 million, exceeding the Zacks Consensus Estimate of $296.1 million, with EBIT growing by $11 million due to an 8% increase in volumes [4] Financial Position - At the end of Q1 fiscal 2025, Cabot had a cash balance of $183 million, with cash flows from operating activities amounting to $124 million [5] - Capital expenditures totaled $77 million, with $24 million allocated for dividend payments and $42 million for share repurchases during the quarter [5] Outlook - Cabot expects adjusted EPS for fiscal 2025 to be between $7.40 and $7.80, considering business segment results and customer agreements [6] - The outlook incorporates foreign exchange rates and interest rate projections but excludes potential tariff impacts, with strong operating cash flow anticipated to support growth investments and shareholder returns [6] - The company is focused on its "Creating for Tomorrow" strategy aimed at long-term value creation [6] Stock Performance - CBT stock has increased by 19.3% over the past year, outperforming the industry growth of 5% [7]

Financial Performance - Cabot Corporation reported diluted EPS of $1.67 and adjusted EPS of $1.76, representing a 13% increase in adjusted EPS year-over-year[3]. - Net income attributable to Cabot Corporation was $93 million, compared to $50 million in the prior year[3]. - Gross profit increased to $235 million, up from $218 million year-over-year, reflecting a gross margin improvement[35]. - Net income attributable to Cabot Corporation was $93 million, compared to $50 million in the prior year, representing an increase of 86%[36]. - Diluted earnings per share rose to $1.67, significantly higher than $0.88 in the same quarter last year[36]. - The net income attributable to Cabot Corporation for the fiscal year 2024 was $380 million, compared to $424 million in fiscal year 2023, reflecting a decrease of approximately 10.4%[42]. - Diluted earnings per share for the fiscal year 2024 were $6.72, down from $7.06 in fiscal year 2023, indicating a decline of about 4.8%[42]. Sales and Revenue - Net sales for the first quarter were $955 million, slightly down from $958 million in the same quarter last year[3]. - Cabot Corporation reported net sales of $955 million for the three months ended December 31, 2024, a slight decrease from $958 million in the same period of 2023[35]. - Cabot Corporation reported net sales of $1,000 million for the fiscal year 2024, with a slight decrease from $1,019 million in the previous year[40]. - The Reinforcement Materials segment generated sales of $611 million, while the Performance Chemicals segment reported sales of $311 million, showing a mixed performance across segments[36]. - Reinforcement Materials sales reached $611 million in the December quarter of fiscal 2025, with an EBITDA margin of 24%[47]. - Performance Chemicals sales were $311 million in the December quarter of fiscal 2025, achieving an EBITDA margin of 21%[47]. Segment Performance - EBIT for the Reinforcement Materials segment was $130 million, up 1% year-over-year, driven by volume growth in Asia Pacific and Europe, Middle East, and Africa[4]. - Performance Chemicals segment EBIT increased by 32% year-over-year to $45 million, primarily due to an 8% increase in volumes[4]. - Segment earnings before interest and taxes for Reinforcement Materials were $537 million in fiscal year 2024, a decrease from $701 million in fiscal year 2023[40]. - The company reported a total segment EBIT of $701 million for fiscal year 2024, down from $701 million in fiscal year 2023, indicating stable performance despite market challenges[40]. - The company recorded a total segment EBIT of $175 million for the December quarter of fiscal 2025[47]. - Total Segment EBITDA for the December quarter of fiscal 2025 was $212 million[47]. Cash Flow and Capital Expenditures - Cash flows from operations were $124 million, with $77 million allocated to capital expenditures and $66 million returned to shareholders through dividends and share repurchases[6]. - Cash provided by operating activities for the three months ended December 31, 2024, was $124 million, an increase from $105 million in the same period of 2023[43]. - The company experienced a cash decrease of $40 million in cash and cash equivalents, ending the period with $183 million compared to $244 million at the beginning[43]. - Additions to property, plant, and equipment amounted to $77 million for the three months ended December 31, 2024, compared to $54 million in the same period of 2023[43]. - The company paid cash dividends of $24 million to common stockholders during the three months ended December 31, 2024, slightly up from $22 million in the same period of 2023[43]. - Free cash flow for the December quarter of fiscal 2025 was reported at $47 million, with discretionary free cash flow at $114 million[47]. Financial Position - The company ended the quarter with a cash balance of $183 million and approximately $1.3 billion in liquidity[6]. - Total current assets decreased to $1,496 million from $1,605 million, primarily due to a reduction in cash and cash equivalents[38]. - Total liabilities decreased slightly to $2,127 million from $2,145 million, indicating a stable financial position[39]. - The company reported a total stockholders' equity of $1,515 million, down from $1,590 million in the previous quarter[39]. - Cabot Corporation's interest expense decreased to $18 million from $22 million, contributing to improved operational efficiency[36]. Taxation - The effective tax rate for the first quarter was 28%, with an expected range of 27% to 29% for fiscal 2025[13]. - The effective tax rate for the December quarter of fiscal 2024 was 28%, while the operating tax rate remained consistent at 28%[44]. - The company expects its operating tax rate for fiscal 2025 to be in the range of 27% to 29%[46]. Strategic Outlook - The outlook for adjusted EPS for fiscal year 2025 is projected to be in the range of $7.40 to $7.80[14]. - The company continues to execute its "Creating for Tomorrow" strategy, focusing on operational excellence and strategic growth projects[14]. - The company did not provide specific forward-looking guidance due to uncertainties related to certain items, including unusual gains and losses[29].

Core Insights - Cabot Corporation reported diluted earnings per share (EPS) of $1.67 and adjusted EPS of $1.76 for the first quarter of fiscal year 2025, reflecting a 13% increase in adjusted EPS year-over-year [1][4][5] Financial Performance - The company achieved a net income of $93 million for the first quarter, compared to $50 million in the same quarter of the previous year [4][5] - Operating cash flow for the quarter was strong at $124 million, with $77 million allocated to capital expenditures and $66 million returned to shareholders through dividends and share repurchases [3][7] - The effective tax rate for the quarter was 28%, with an expected operating tax rate for fiscal 2025 projected to be between 27% and 29% [8][9] Segment Results - The Reinforcement Materials segment reported EBIT of $130 million, a 1% increase year-over-year, driven by volume growth in Asia Pacific and Europe, Middle East, and Africa [5][6] - The Performance Chemicals segment saw EBIT grow by 32% year-over-year to $45 million, primarily due to an 8% increase in volumes [6][25] Outlook - The company maintains an outlook for adjusted EPS for fiscal year 2025 in the range of $7.40 to $7.80, factoring in anticipated business segment results and market conditions [9][10] - Cabot Corporation expressed confidence in its operational agility and execution capabilities, supporting continued investment in strategic growth projects [9][10]

Core Viewpoint - Cabot Corporation (NYSE: CBT) is highlighted as a strong investment opportunity in the specialty chemicals and performance materials sector, with a bullish outlook since May of the previous year when the stock was trading around $101 [1]. Group 1: Company Overview - Cabot Corporation operates in the specialty chemicals and performance materials industry, focusing on undervalued profitable stocks with strong balance sheets and minimal debt [1]. Group 2: Investment Strategy - The investment strategy involves buying undervalued stocks and, when opportunities arise, writing calls against positions to generate additional income [1]. - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1].

Group 1: Earnings Expectations for Cabot - Wall Street anticipates a year-over-year increase in earnings for Cabot, with expected earnings of $1.80 per share, reflecting a +15.4% change, and revenues projected at $992.98 million, up 3.7% from the previous year [3][10] - The earnings report is scheduled for February 3, 2025, and the actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [2][12] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading can indicate the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [6][7] - For Cabot, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.51%, indicating a bearish sentiment among analysts [10][11] - The company has a Zacks Rank of 4, which complicates the prediction of an earnings beat [11] Group 3: Historical Performance and Industry Comparison - Cabot has beaten consensus EPS estimates three times in the last four quarters, although it missed expectations in the most recent quarter by -1.10% [12][13] - In comparison, Eastman Chemical is expected to report earnings of $1.58 per share, with a year-over-year change of +20.6%, and revenues projected at $2.26 billion, up 2.3% from the previous year [17][18] - Eastman Chemical has a positive Earnings ESP of 0.10% and a Zacks Rank of 3, suggesting a higher likelihood of beating consensus estimates [18]