NYSE$CBT

Cabot Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Achieved strong EPS and record adjusted EPS.

Cabot Corporation reported strong second quarter fiscal year 2022 results, driven by record segment EBIT in Reinforcement Materials and Performance Chemicals. Diluted EPS increased by 42%, and adjusted EPS increased by 22% year-over-year. The company completed the divestiture of the Purification Solutions business and returned $36 million to shareholders through dividends and share repurchases.

  • Record segment EBIT results for the fiscal quarter in both Reinforcement Materials and Performance Chemicals driving a 42% increase in Diluted EPS and a 22% increase in Adjusted EPS year-over-year
  • Key win in Battery Materials with sales of conductive carbon additive blends to a top five battery producer
  • Completed the divestiture of the Purification Solutions business
  • Returned $36 million in the quarter to shareholders through dividends and share repurchases

Headline financials

Total Revenue

$1.09B

Previous: $842M+29.7%
EPS (adj)

$1.69

Previous: $1.38+22.5%
Operating tax rate

27.0%

No prior period
Capital Expenditures

-$71M

Previous: -$69M-2.9%
Free Cash Flow

$36M

Previous: $6M+500.0%
Net Income

$107M

Previous: $75M+42.7%
Operating Income

$161M

Previous: $128M+25.8%
Gross Profit

$232M

Previous: $214M+8.4%
Cash & Equivalents

$215M

Previous: $146M+47.3%
Total Assets

$3.52B

Previous: $3.05B+15.7%
Stock-Based Comp

$5M

Previous: $6M-16.7%

Revenue & EPS history

Cabot · Revenue · Quarterly

$1.09B

Q2 2022+29.7%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cabot · $987M total across 2 segments · Q2 2022

  • Reinforcement Materials
    $627M+44.5%
  • Performance Chemicals
    $360M+22.4%

Forward guidance

Cabot Corporation increased its adjusted earnings per share outlook for the fiscal year by $0.30 at the midpoint to a new range of $5.80 to $6.20.

Tailwinds

  • We are very pleased with the results for the first half of our fiscal year
  • We feel good about the underlying demand and the strength of our businesses
  • We are well positioned to deliver record adjusted earnings per share for the fiscal year
  • The ability to deliver exceptional results in both segments reflects the strength of our portfolio
  • Growth investments position us well for fiscal 2022 and the coming years

Headwinds

  • There is still uncertainty around the geopolitical environment
  • There is still uncertainty around the pandemic-related restrictions

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 2022

Historical avgQ2 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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