NYSE$CBT

Cabot Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cabot team delivered second consecutive quarter of record adjusted EPS.

Cabot Corporation reported strong second quarter fiscal year 2021 results, with a diluted EPS of $1.30 and a record adjusted EPS of $1.38. The company's global footprint and operational agility, combined with strong demand in key end markets, drove year-over-year and sequential growth in core businesses.

  • GAAP EPS of $1.30, compared to a loss of $0.01 in the prior fiscal year second quarter.
  • Record Adjusted EPS of $1.38, compared to $0.77 in the prior fiscal year second quarter
  • Second quarter EBIT in Reinforcement Materials increased 46% year over year to a record high of $89 million
  • Performance Chemicals EBIT increased by $27 million compared to the second quarter of fiscal 2020 to $58 million, driven by 11% higher volumes

Headline financials

Total Revenue

$842M

Previous: $710M+18.6%
EPS (adj)

$1.38

Previous: $0.77+79.2%
Capital Expenditures

-$69M

Previous: -$119M+42.0%
Free Cash Flow

$6M

Previous: -$120M+105.0%
Net Income

$75M

Previous: -$1M+7600.0%
Operating Income

$128M

Previous: $24M+433.3%
Gross Profit

$214M

Previous: $153M+39.9%
Cash & Equivalents

$146M

Previous: $142M+2.8%
Total Assets

$3.05B

Previous: $3.1B-1.6%
Stock-Based Comp

$6M

Previous: $2M+200.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$842M

Q2 2021+18.6%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cabot · $728M total across 2 segments · Q2 2021

  • Reinforcement Materials
    $434M+22.3%
  • Performance Chemicals
    $294M+20.0%

Forward guidance

Cabot expects adjusted earnings per share for the full fiscal year of 2021 to be in the range of $4.70 to $4.95.

Tailwinds

  • Continued demand strength across segments.
  • Strength of portfolio
  • Agility of supply chain network
  • Value customers place on Cabot’s product offerings
  • Emerging from the COVID crisis a stronger company

Headwinds

  • Flow-through of higher raw material costs in Asia
  • Moderating volumes into automotive applications due to the semi-conductor chip shortage
  • Increased fixed costs due to the timing of scheduled maintenance activities.
  • Some impact from the flow-through of higher raw material costs in Asia
  • Moderating volumes into automotive applications due to the semi-conductor chip shortage

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 Q2 2021

Historical avgQ2 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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