Cabot (US:CBT) ZACKSยท2024-11-07 13:06Core Viewpoint - Cabot Corporation reported a decline in net income and earnings per share for the fourth quarter of fiscal 2024, while adjusted EPS showed a slight increase but missed consensus estimates [1][5]. Financial Performance - The company recorded a profit of $137 million or $2.43 per share for Q4 fiscal 2024, down from $234 million or $4.10 in the same quarter last year [1]. - Adjusted EPS for the quarter was $1.80, an increase from $1.65 year-over-year, but below the Zacks Consensus Estimate of $1.82 [1]. - Net sales increased by approximately 3.7% year-over-year to $1,001 million, missing the Zacks Consensus Estimate of $1,016.6 million [2]. Segment Highlights - Sales in the Reinforcement Materials segment rose by around 3.2% year-over-year to $644 million, missing the consensus estimate of $648.2 million. EBIT in this segment declined by $11 million due to reduced volumes and higher costs [3]. - Performance Chemicals unit sales increased by approximately 5.2% year-over-year to $322 million, also missing the consensus estimate of $339.9 million. EBIT grew by $8 million due to a 2% rise in volumes and a favorable product mix [4]. Fiscal Year Results - For fiscal 2024, Cabot's net income was $380 million or $6.72 per share, compared to $445 million or $7.73 the previous year. Adjusted EPS for the fiscal year was $7.06 [5]. - Net sales for the fiscal year rose by around 1.6% year-over-year to $3,994 million [5]. Financial Position - At the end of Q4 fiscal 2024, the company had a cash balance of $223 million, with cash flows from operating activities amounting to $204 million. Capital expenditures totaled $92 million, and cash was used for dividend payments of $24 million and share repurchases of $66 million [6]. Outlook - Cabot estimates fiscal 2025 adjusted EPS to be between $7.40 and $7.80, indicating a 5% to 10% rise from fiscal 2024 results, driven by growth in the Reinforcement Materials segment and recovery in Performance Chemicals [7]. - The company anticipates strong operational cash flow and discretionary free cash flow, enabling ongoing investment in growth projects and capital return to shareholders [7]. Stock Performance - Cabot's shares have gained 64% over the past year, contrasting with a 9.5% decline in the industry [8].