NYSE$CBT

Cabot Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cabot's operating performance led to adjusted EPS significantly higher than the first quarter and in-line with expectations.

Cabot Corporation reported Q2 fiscal year 2023 results with adjusted EPS of $1.33. The Reinforcement Materials segment achieved a record EBIT of $122 million, up 21% year-over-year. The company's cash flow from operations was $162 million, supporting a return of $37 million to shareholders through dividends and share repurchases. The quarterly dividend was increased to $0.40 per share, an 8% increase.

  • Reinforcement Materials segment EBIT was a record $122 million, up 21% year-over-year.
  • Cash Flows from Operations were $162 million.
  • Returned $37 million to shareholders through dividends and share repurchases.
  • Increased quarterly dividend to $0.40 per share, up 8% over the prior dividend.

Headline financials

Total Revenue

$1.03B

Previous: $1.09B-5.4%
EPS (adj)

$1.33

Previous: $1.69-21.3%
Operating tax rate

25.0%

Previous: 27.0%-7.4%
Capital Expenditures

-$86M

Previous: -$71M-21.1%
Free Cash Flow

-$11M

Previous: $36M-130.6%
Net Income

$75M

Previous: $107M-29.9%
Operating Income

$129M

Previous: $161M-19.9%
Gross Profit

$210M

Previous: $232M-9.5%
Cash & Equivalents

$205M

Previous: $215M-4.7%
Total Assets

$3.52B

Previous: $3.52B-0.1%
Stock-Based Comp

$6M

Previous: $5M+20.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$1.03B

Q2 2023-5.4%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cabot · $998M total across 2 segments · Q2 2023

  • Reinforcement Materials
    $672M+7.2%
  • Performance Chemicals
    $326M-9.4%

Forward guidance

Cabot expects adjusted EPS for the fiscal year to be in the range of $6.10 to $6.50.

Tailwinds

  • Underlying demand improved in the second quarter as compared to the first quarter of the fiscal year.
  • Reinforcement Materials continues to perform extremely well.
  • The outlook for the Reinforcement Materials segment remains robust.
  • Demand in Performance Chemicals is improving sequentially.
  • Demand in Performance Chemicals is expected to continue through the fiscal year.

Headwinds

  • The pace of demand recovery and volume momentum across Performance Chemicals end markets is slower than what was expected last quarter.

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 2023

Historical avgQ2 2023

+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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