NYSE$CBT

Cabot Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Cabot reported strong GAAP EPS and record adjusted EPS due to strengthening recovery in end markets.

Cabot Corporation reported strong first quarter fiscal year 2021 results with a strong GAAP EPS of $1.06 and a record adjusted EPS of $1.18. The company saw a strengthening recovery in its end markets, with improved demand trends, robust unit margins, and disciplined operational execution.

  • Strong GAAP EPS of $1.06, compared to $0.70 in the prior fiscal year first quarter.
  • Record Adjusted EPS of $1.18 compared to $0.69 in the prior fiscal year first quarter
  • First quarter EBIT in Reinforcement Materials increased 87% year over year to a record high of $88 million
  • Performance Chemicals EBIT increased 32% compared to the first quarter of fiscal 2020 due to 9% higher volumes

Headline financials

Total Revenue

$746M

Previous: $727M+2.6%
EPS (adj)

$1.18

Previous: $0.70+68.6%
Capital Expenditures

-$29M

Previous: -$68M+57.4%
Free Cash Flow

$31M

Previous: -$27M+214.8%
Net Income

$60M

Previous: $41M+46.3%
Operating Income

$118M

Previous: $63M+87.3%
Gross Profit

$193M

Previous: $141M+36.9%
Cash & Equivalents

$147M

Previous: $173M-15.0%
Total Assets

$2.98B

Previous: $3.15B-5.4%
Stock-Based Comp

$4M

Previous: $1M+300.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$746M

Q1 2021+2.6%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cabot · $642M total across 2 segments · Q1 2021

  • Reinforcement Materials
    $375M
  • Performance Chemicals
    $267M

Forward guidance

The company expects demand to remain strong in the second quarter, with January levels starting the quarter above the prior year. However, they anticipate increasing raw material and fixed costs sequentially and less customer inventory replenishment than they experienced in the first quarter. Based on these factors, they expect adjusted earnings per share in the second fiscal quarter to be between $0.90 and $1.00.

Tailwinds

  • Demand to remain strong in the second quarter.
  • January levels starting the quarter above the prior year.
  • Cabot is emerging from the COVID crisis a stronger company
  • Cabot leveraged strong culture of connectivity and collaboration to support customers
  • Cabot will continue to build on strengths into 2021

Headwinds

  • Increasing raw material costs sequentially
  • Increasing fixed costs sequentially
  • Less customer inventory replenishment than experienced in Q1
  • Visibility in the longer term is somewhat limited
  • Expect adjusted earnings per share in the second fiscal quarter to be between $0.90 and $1.00

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+13.5%

Q4 2015

Best reaction

-13.4%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+7.0%+2.4%
Q1 2026+10.3%+4.6%-1.8%
Q4 2025-7.0%-6.7%-2.7%
Q2 2025-6.8%-4.6%-3.3%
Q1 2025+3.9%+1.6%-0.9%
Q4 2024-0.1%+5.5%-1.3%
Q3 2024+12.6%+6.9%+12.6%
Q2 2024+7.4%+8.3%+4.6%
Q1 2024+5.8%+10.1%+18.3%
Q4 2023+5.7%+9.6%+13.6%
Q3 2023+1.9%+3.2%+4.4%
Q2 2023-4.5%-3.1%+6.2%
Q1 2023+1.1%+7.2%+1.4%
Q4 2022-7.1%-2.1%-5.3%
Q3 2022-2.3%+6.0%-1.8%
Q2 2022+5.6%+1.7%+12.5%
Q1 2022+11.8%+12.3%+31.7%
Q4 2021-1.3%-0.0%-3.2%
Q3 2021+0.2%+2.4%-4.8%
Q2 2021+4.6%+13.6%+16.4%
Q1 2021+5.4%+7.8%+13.6%
Q4 2020+7.2%+4.3%+6.1%
Q3 2020+0.1%+5.7%-0.1%
Q2 2020-9.3%-10.4%+21.8%
Q1 2020+5.8%+5.1%-3.5%
Q4 2019+8.7%+9.4%+0.6%
Q3 2019-5.7%-7.7%-3.4%
Q2 2019+0.5%-0.8%-6.5%
Q1 2019-9.7%-11.0%-3.9%
Q4 2018-3.9%-4.2%-7.9%
Q3 2018-4.4%-3.4%-4.4%
Q2 2018+6.5%+9.2%+14.0%
Q1 2018+6.5%-0.9%-3.5%
Q4 2017+5.2%+6.3%+1.8%
Q3 2017-2.9%-3.1%-3.0%
Q2 2017-6.6%-10.3%-13.2%
Q1 2017+4.1%+3.8%+5.5%
Q4 2016-3.1%-7.3%-2.1%
Q3 2016+5.6%+0.7%+2.7%
Q2 2016-8.0%
Q1 2016-1.1%
Q4 2015+13.5%
Q3 2015-1.1%
Q2 2015-7.4%
Q1 2015+4.7%
Q4 2014-4.1%
Q3 2014-5.4%
Q2 2014+1.3%
Q1 2014+0.5%
Q4 2013+2.0%
Q3 2013-2.5%
Q2 2013-2.3%
Q1 2013-13.4%
Q4 2012+1.2%
Q3 2012-5.4%
Q2 2012+3.5%
Q1 2012+13.5%
Q4 2011+9.3%
Q4 2010+2.1%
Q3 2011+2.1%
Q2 2011-0.4%
Q1 2010-0.0%
Q1 2011+2.5%
Q4 2008+2.9%
Q2 2010+2.9%
Q3 2009+0.1%
Q4 2009+0.1%
Q3 2010+0.1%

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