NYSE$CBT

Cabot Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Cabot's first quarter of fiscal year 2022 results were announced, with adjusted EPS surpassing the previous year's performance by 9%.

Cabot Corporation reported a net loss of $89 million, or $1.57 per share, but an adjusted EPS of $1.29, which is 9% higher than the first quarter of last year. The company saw strong performance in Reinforcement Materials and Performance Chemicals segments, driven by solid demand and strong pricing execution. Cabot also made progress in its Battery Materials segment and returned $40 million to shareholders through dividends and share repurchases.

  • Delivered strong results with adjusted EPS 9% higher than last year’s first quarter
  • Solid demand and strong pricing execution in the Reinforcement Materials and Performance Chemicals segments drove a 16% adjusted EPS increase sequentially.
  • Momentum in Battery Materials continued, with year-over-year volume growth of 58%
  • The company successfully concluded 2022 tire customer negotiations, and realized pricing increases in all regions while expecting volume growth in line with regional demand.

Headline financials

Total Revenue

$968M

Previous: $746M+29.8%
EPS (adj)

$1.29

Previous: $1.18+9.3%
Capital Expenditures

-$30M

Previous: -$29M-3.4%
Free Cash Flow

-$119M

Previous: $31M-483.9%
Net Income

-$89M

Previous: $60M-248.3%
Operating Income

-$83M

Previous: $118M-170.3%
Gross Profit

$198M

Previous: $193M+2.6%
Cash & Equivalents

$179M

Previous: $147M+21.8%
Total Assets

$3.32B

Previous: $2.98B+11.2%
Stock-Based Comp

$6M

Previous: $4M+50.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$968M

Q1 2022+29.8%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Cabot · $843M total across 2 segments · Q1 2022

  • Reinforcement Materials
    $541M+44.3%
  • Performance Chemicals
    $302M+13.1%

Forward guidance

Cabot increased its outlook for adjusted earnings per share for fiscal year 2022 to now be in the range of $5.50 to $5.90.

Tailwinds

  • Reinforcement Materials will benefit from the calendar year 2022 customer agreements.
  • Anticipate demand growth across major product lines along with particular strength in battery materials and inkjet packaging in Performance Chemicals segment.
  • Outlook for discretionary free cash flow for the full year remains strong.
  • Company remains on track with long-term guidance to generate over $1 billion during the next three years.
  • Expect demand to improve across all of key product lines and a step up in profitability largely due to the benefit from 2022 customer agreements in the second quarter of the fiscal year.

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 2022

Historical avgQ1 2022

+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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