NYSE$CBT

Cabot Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Cabot's first quarter of fiscal year 2024 results were announced, featuring strong adjusted EPS growth and segment EBIT increases.

Cabot Corporation reported its first quarter fiscal year 2024 results, showcasing a strong adjusted EPS of $1.56, up 59% year-over-year, driven by operational excellence and agility in a weak market. The Reinforcement Materials segment and Performance Chemicals segment both experienced significant EBIT growth, and the company finalized calendar year 2024 customer agreements with improved pricing and product mix. Strong operating cash flow supported shareholder returns through dividends and share repurchases, while the balance sheet remained strong.

  • Adjusted EPS reached $1.56, a 59% increase year-over-year.
  • Reinforcement Materials segment EBIT increased by 37% compared to the same quarter in the prior year.
  • Performance Chemicals segment EBIT grew by 17% year-over-year.
  • Operating cash flow was strong at $105 million, supporting shareholder returns.

Headline financials

Total Revenue

$958M

Previous: $965M-0.7%
EPS

$0.88

Previous: $0.98-10.2%
Operating tax rate

28.0%

Previous: 25.0%+12.0%
Capital Expenditures

-$54M

Previous: -$35M-54.3%
Free Cash Flow

-$4M

Previous: $19M-121.1%
Net Income

$50M

Previous: $54M-7.4%
Operating Income

$136M

Previous: $105M+29.5%
Gross Profit

$218M

Previous: $181M+20.4%
Cash & Equivalents

$244M

Previous: $190M+28.4%
Total Assets

$3.7B

Previous: $3.54B+4.5%
R&D Expense

$15M

No prior period
Stock-Based Comp

$6M

Previous: $6M+0.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$958M

Q1 2024-0.7%vs Q1 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cabot · $930M total across 2 segments · Q4 2023

  • Reinforcement Materials
    $624M-10.9%
  • Performance Chemicals
    $306M-9.5%

Forward guidance

Cabot anticipates adjusted earnings per share for fiscal year 2024 to be in the range of $6.30 to $6.80, reflecting a 22% increase at the midpoint compared to fiscal 2023. They expect strong operating cash flow, which would allow them to continue investing in strategic growth projects and to continue to return robust levels of cash to shareholders through dividends and share repurchases.

Tailwinds

  • Adjusted EPS for fiscal year 2024 is expected to be in the range of $6.30 to $6.80.
  • Expect to generate growth in adjusted EPS as reflected in our guidance range.
  • Outlook for operating cash flow remains strong.
  • Continue investing in strategic growth projects.
  • Continue to return robust levels of cash to shareholders through dividends and share repurchases.

Headwinds

  • Industry capacity utilization and competition from other specialty chemical companies
  • Safety, health and environmental requirements and related constraints imposed on our business
  • Regulatory and financial risks related to climate change developments
  • Volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine, and the U.S.-China trade relationship
  • Unanticipated delays in, or increased cost of site development projects

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 2024

Historical avgQ1 2024

+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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