NYSE$CBT

Cabot Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Cabot's Q2 2024 financial performance reflected growth in adjusted EPS and strong segment results.

Cabot Corporation reported strong second quarter fiscal year 2024 results, with a 34% increase in Adjusted EPS compared to the same quarter in the prior year. The company's Reinforcement Materials segment and Performance Chemicals segment both saw EBIT growth, driven by price and volume improvements. Cabot also increased its quarterly dividend by 8% and repurchased shares, returning cash to shareholders.

  • Diluted EPS of $1.49 and adjusted EPS of $1.78, which represents a 34% increase in Adjusted EPS as compared to the same quarter in the prior year
  • Reinforcement Materials segment EBIT of $149 million; up 22% compared to the same quarter in the prior year
  • Performance Chemicals segment EBIT of $31 million; up 11% compared to the same quarter in the prior year
  • Cash Flows from Operations of $176 million in the second fiscal quarter supported the return of $47 million of cash to shareholders in the quarter

Headline financials

Total Revenue

$1.02B

Previous: $1.03B-1.4%
EPS

$1.49

Previous: $1.33+12.0%
Operating tax rate

28.0%

Previous: 25.0%+12.0%
Reinforcement EBIT

$149M

No prior period
Performance Chemicals EBIT

$31M

No prior period
Capital Expenditures

-$97M

Previous: -$86M-12.8%
Free Cash Flow

-$13M

Previous: -$11M-18.2%
Net Income

$84M

Previous: $75M+12.0%
Operating Income

$156M

Previous: $129M+20.9%
Gross Profit

$246M

Previous: $210M+17.1%
Cash & Equivalents

$206M

Previous: $205M+0.5%
Total Assets

$3.6B

Previous: $3.52B+2.2%
R&D Expense

$15M

No prior period
Stock-Based Comp

$7M

Previous: $6M+16.7%

Revenue & EPS history

Cabot · Revenue · Quarterly

$1.02B

Q2 2024-1.4%vs Q2 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 is raising its Adjusted EPS guidance range for the fiscal year to $6.65 to $6.85 from our previously communicated range of $6.30 to $6.80. Reinforcement Materials continues to deliver exceptional results and we are seeing some encouraging demand signals in Performance Chemicals. Our outlook for operating cash flow also remains strong, which would enable us to continue investing in strategic growth projects and to continue returning robust levels of cash to shareholders.

Tailwinds

  • Reinforcement Materials continues to deliver exceptional results
  • Encouraging demand signals in Performance Chemicals
  • Strong outlook for operating cash flow
  • Continue investing in strategic growth projects
  • Continue returning robust levels of cash to shareholders

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 2024

Historical avgQ2 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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