Cabot (US:CBT) ZACKSยท2024-08-29 16:16Core Insights - Cabot Corporation (CBT) has experienced a 20.4% increase in stock value over the past six months, driven by strong earnings performance and positive revisions to earnings guidance [1] - The stock is considered an attractive investment opportunity with strong growth prospects, reflected in its Zacks Rank 2 (Buy) [1] Earnings Performance - CBT has consistently outperformed the Zacks Consensus Estimate, achieving positive earnings surprises in the last four quarters with an average surprise of 8.6% [2] - The Zacks Consensus Estimate for CBT's fiscal 2024 earnings is projected at $7.07, indicating a 31.4% increase from the previous year, with a further 10.6% increase expected in fiscal 2025 [3] Earnings Estimates Revision - In the last two months, the Zacks Consensus Estimate for CBT's fiscal 2024 earnings has been raised by 4.3%, while the estimate for fiscal 2025 has seen a 3.9% upward revision [4] Stock Performance Comparison - Over the past year, Cabot's shares have surged 41.7%, contrasting with an 8.2% decline in the industry [5] Business Segment Performance - In the fiscal third quarter, Cabot's Performance Chemicals division reported an 8.1% year-over-year sales growth, reaching $332 million, with EBIT increasing by 72% to $55 million due to higher volumes and a favorable product mix [5] - The Reinforcement Materials segment also benefited from increased volumes in Europe and Asia Pacific, along with improved pricing and product mix in 2024 customer agreements [6] Future Outlook - The company has raised its fiscal 2024 adjusted EPS guidance to a range of $7.00-$7.10, reflecting an increase of 30 cents at the midpoint, based on expected strong results from the Performance Chemicals segment and continued strength in the Reinforcement Materials unit [7]