NYSE$CBT

Cabot Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong diluted EPS and adjusted EPS.

Cabot Corporation reported exceptional operating results with strong volumes and earnings growth for the third quarter of fiscal year 2021, driven by robust demand and successful implementation of price increases.

  • GAAP EPS of $1.48, compared to a loss of $0.12 in the prior fiscal year third quarter.
  • Adjusted EPS of $1.35, compared to a loss of $0.07 in the prior fiscal year third quarter
  • Robust demand across diverse applications and geographies.
  • Liquidity remained strong at approximately $1.3 billion.

Headline financials

Total Revenue

$917M

Previous: $518M+77.0%
EPS (adj)

$1.35

Previous: -$0.07+2028.6%
Capital Expenditures

-$115M

Previous: -$162M+29.0%
Free Cash Flow

-$29M

Previous: -$168M+82.7%
Net Income

$86M

Previous: -$6M+1533.3%
Operating Income

$134M

Previous: $4M+3250.0%
Gross Profit

$214M

Previous: $69M+210.1%
Cash & Equivalents

$173M

Previous: $162M+6.8%
Total Assets

$3.23B

Previous: $3.02B+6.8%
Stock-Based Comp

$6M

Previous: $2M+200.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$917M

Q3 2021+77%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cabot · $782M total across 2 segments · Q3 2021

  • Reinforcement Materials
    $479M+143.1%
  • Performance Chemicals
    $303M+37.7%

Forward guidance

Cabot expects demand to remain strong across segments and anticipates an elevated level of fixed costs in the fourth quarter due to maintenance, plant outages and higher feedstock differentials. They are increasing their outlook for the year, expecting adjusted earnings per share for fiscal year 2021 to be in the range of $4.85 to $5.05.

Tailwinds

  • Demand is expected to remain strong across the segments
  • Adjusted EPS for fiscal year 2021 is expected to be in the range of $4.85 to $5.05
  • Strong fundamentals of businesses
  • Demonstrated performance momentum
  • Growth investments position the company well for fiscal 2022 and the coming years.

Headwinds

  • Anticipating an elevated level of fixed costs as compared to the third quarter
  • The timing of maintenance activities
  • Unfavorable impacts associated with plant outages
  • Higher feedstock differentials
  • Elevated fixed costs

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 Q3 2021

Historical avgQ3 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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