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]

Core Viewpoint - Cabot's recent earnings report showed a decline in profits and revenues compared to the previous year, raising questions about future performance and market expectations [2][3][6]. Financial Performance - For Q4 fiscal 2024, Cabot reported a profit of $137 million or $2.43 per share, down from $234 million or $4.10 in the same quarter last year [2]. - Adjusted EPS for the quarter was $1.80, slightly up from $1.65 year-over-year but below the Zacks Consensus Estimate of $1.82 [2]. - Net sales increased by approximately 3.7% year-over-year to $1,001 million, missing the Zacks Consensus Estimate of $1,016.6 million [3]. Segment Highlights - Reinforcement Materials sales rose about 3.2% year-over-year to $644 million, but fell short of the Zacks Consensus Estimate of $648.2 million [4]. - Performance Chemicals unit saw a 5.2% year-over-year increase in sales to $322 million, also missing the Zacks Consensus Estimate of $339.9 million [5]. Fiscal Year Results - For fiscal 2024, Cabot's net income was $380 million or $6.72 per share, down from $445 million or $7.73 the previous year [6]. - Total net sales for the fiscal year rose around 1.6% year-over-year to $3,994 million [7]. Financial Position - At the end of Q4, Cabot had a cash balance of $223 million, with cash flows from operating activities amounting to $204 million [8]. - Capital expenditures were $92 million, with $24 million used for dividends and $66 million for share repurchases during the quarter [8]. Outlook - The company projects fiscal 2025 adjusted EPS to be between $7.40 and $7.80, indicating a 5% to 10% increase from fiscal 2024 results [9]. - Cabot expects strong operational cash flow and discretionary free cash flow to support ongoing investments and capital returns to shareholders [9]. Estimates and Ratings - Estimates for Cabot have trended upward over the past month, although the stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the near term [10][12]. - The company has a Growth Score of A but lags in Momentum Score with a D, while holding a B grade on the value side, resulting in an aggregate VGM Score of A [11].

Cabot Corporation’s (CBT) board has authorized it to buy back up to 10 million additional shares of its common stock, bringing the total number of shares available for repurchase to around 11 million.Returning cash to shareholders is a critical component of the capital allocation system, and this authorization indicates the company's confidence in its expected earnings performance and cash flow generation over the future years.Cabot's management will decide when and how many shares will be repurchased based ...

| --- | --- | --- | |-------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------------------------| | Securities registered pursuant to Section 12(b) Title of each class | of the Securities Trading symbol(s) | Exchange Act of 1934: Name of each exchange on which registered | | Common Stock, $1 par value per share | CBT | The New York Stock Exchange | UNITED STATES SECURITIES AND EXCHANGE COM ...

Encore Capital Group, Inc. (ECPG) shares have lost 1.9% since it reported third-quarter 2024 results on Nov. 6, 2024. The quarterly earnings suffered from reduced portfolio purchases in the U.K. by Cabot and rising operating expenses. Improved purchasing in the United States and an optimistic outlook for this business in the future partially offset the negatives. ECPG reported third-quarter 2024 adjusted earnings per share (EPS) of $1.26, which missed the Zacks Consensus Estimate by 14.3%. However, the bott ...

Cabot Corporation (CBT) recorded a profit of $137 million or $2.43 per share for the fourth quarter of fiscal 2024 (ended Sept. 30, 2024) compared with $234 million or $4.10 in the year-ago quarter. Barring one-time items, adjusted earnings per share (EPS) were $1.80 in the reported quarter, up from $1.65 in the year-ago quarter. The figure, however, missed the Zacks Consensus Estimate of $1.82. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Net sales increased around 3.7% year over ...

Cabot Corporation (NYSE:CBT) Q4 2024 Earnings Conference Call November 5, 2024 8:00 AM ET Company Participants Steve Delahunt - Vice President, Treasurer & Investor Relations Sean Keohane - Chief Executive Officer & President Erica McLaughlin - Executive Vice President & Chief Financial Officer Conference Call Participants John Roberts - Mizuho Chris Perrella - UBS Jeff Zekauskas - JPMorgan Dan Rizzo - Jefferies Operator Good day, everyone, and thank you for standing by. Welcome to the Fourth Quarter 2024 C ...

CABOT EARNINGS TELECONFERENCE Fourth Quarter - Fiscal 2024 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 fiscal 2025, including our expectations for performance and growth in our businesses and for adjusted earnings per share in fiscal year 2025, our expectations for operating cash flow for fiscal 2025 and our capital allocation prior ...

Cabot (CBT) came out with quarterly earnings of $1.80 per share, missing the Zacks Consensus Estimate of $1.82 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.10%. A quarter ago, it was expected that this chemical company would post earnings of $1.74 per share when it actually produced earnings of $1.92, delivering a surprise of 10.34%.Over the last four quarters, the company ha ...