Cabot (US:CBT) ZACKSยท2025-05-09 11:45Core Insights - Cabot Corporation (CBT) reported second-quarter fiscal 2025 earnings of $1.69 per share, an increase from $1.49 in the same quarter last year, with adjusted earnings at $1.90 per share, surpassing the Zacks Consensus Estimate of $1.86 [1] - The company's net sales for the quarter were $936 million, falling short of the Zacks Consensus Estimate of $1,038.1 million, representing an 8.2% decrease year-over-year [1] Segment Highlights - Sales in the Reinforcement Materials segment decreased by 12.1% year-over-year to $594 million, missing the Zacks Consensus Estimate of $678.5 million, with EBIT down 12.1% to $131 million due to lower tire demand and contract outcomes in South America [2] - Performance Chemicals unit sales remained flat at $311 million, below the Zacks Consensus Estimate of $328.9 million, while EBIT increased by 61.2% to $50 million, driven by higher volumes in fumed metal oxides for construction and semiconductor applications [3] Financials - At the end of the second quarter, the company had a cash balance of $213 million, with cash flows from operating activities generating $73 million [4] - Capital expenditures totaled $72 million, with $23 million used for dividends and $47 million for share repurchases during the quarter [4] Outlook - The company revised its adjusted EPS guidance for fiscal 2025 to a range of $7.15 to $7.50, reflecting expectations of softer demand due to the uncertain impact of recently implemented tariff policies [5][6] - The revised guidance assumes the company will maintain profit margins consistent with those achieved in the second fiscal quarter [6] Price Performance - Cabot's shares have declined by 27% over the past year, compared to a 30.4% decline in the industry [7]