Cabot (US:CBT) ZACKS·2025-02-04 14:21Financial 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]