Cabot (US:CBT) ZACKSยท2025-08-11 13:06Core Insights - Cabot Corporation (CBT) reported third-quarter fiscal 2025 earnings of $1.86 per share, a decrease from $1.94 in the same quarter last year [1] - Adjusted earnings were $1.90 per share, down from $1.92 year-over-year, but exceeded the Zacks Consensus Estimate of $1.80 [1] - Net sales for the quarter were $923 million, missing the Zacks Consensus Estimate of $962.3 million, and reflecting a 9.2% decline from the prior-year quarter [1] Segment Highlights - Sales in the Reinforcement Materials segment fell approximately 11.7% year-over-year to $573 million, with EBIT down around 5.8% to $128 million due to lower volumes in Asia Pacific and the Americas [2] - The Performance Chemicals division saw a 3.6% decline in sales to $320 million, while EBIT increased by about 3.6% to $57 million, driven by higher gross profit per ton despite reduced volumes [3] Financials - At the end of the third quarter, the company had a cash balance of $239 million, with cash flows from operating activities generating $249 million [4] - Capital expenditures for the quarter totaled $61 million, with $24 million used for dividends and $40 million for share repurchases [4] Outlook - The company reaffirmed its fiscal 2025 adjusted EPS guidance of $7.15 to $7.50, citing ongoing tariff uncertainty and global economic conditions affecting customer demand [5] - Results are expected to be at the mid-to-lower end of the guidance range, although improved demand in the fourth quarter could push results higher [5] - Despite macroeconomic challenges, the company anticipates earnings growth and strong operating cash flow, focusing on cost reductions and operational optimization [5] Price Performance - Cabot's shares have declined by 18.1% over the past year, compared to a 24.4% decline in the industry [6]