NYSE$CBT

Cabot Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Cabot team delivered significant growth in adjusted EPS year-over-year driven by higher margins and stronger volumes across the Company.

Cabot Corporation reported strong Q3 fiscal year 2022 results, with a 14% increase in Diluted EPS and a 28% increase in Adjusted EPS year-over-year. The company saw record Reinforcement Materials segment EBIT results and a 17% increase in Performance Chemicals segment EBIT. Battery Materials continued to show momentum with a 60% volume increase year-over-year.

  • Diluted EPS increased by 14% and Adjusted EPS increased by 28% year-over-year.
  • Reinforcement Materials segment achieved record EBIT results for the fiscal quarter.
  • Performance Chemicals segment EBIT increased by 17% year-over-year due to dynamic pricing and strong product mix.
  • Battery Materials volumes increased by 60% year-over-year.

Headline financials

Total Revenue

$1.15B

Previous: $917M+25.3%
EPS (adj)

$1.73

Previous: $1.35+28.1%
Operating tax rate

24.0%

No prior period
Capital Expenditures

-$121M

Previous: -$115M-5.2%
Free Cash Flow

-$24M

Previous: -$29M+17.2%
Net Income

$97M

Previous: $86M+12.8%
Operating Income

$168M

Previous: $134M+25.4%
Gross Profit

$235M

Previous: $214M+9.8%
Cash & Equivalents

$208M

Previous: $173M+20.2%
Total Assets

$3.57B

Previous: $3.23B+10.6%
Stock-Based Comp

$6M

Previous: $6M+0.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$1.15B

Q3 2022+25.3%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cabot · $1.08B total across 2 segments · Q3 2022

  • Reinforcement Materials
    $707M+47.6%
  • Performance Chemicals
    $372M+22.8%

Forward guidance

Cabot tightens the range of adjusted earnings per share outlook for the fiscal year 2022 to $6.10 to $6.20.

Tailwinds

  • We are tightening the range of our adjusted earnings per share outlook for the fiscal year to $6.10 to $6.20.
  • This is at the high-end of our previously communicated range of $5.80 to $6.20 and reflects an increase of $0.15 at the midpoint.
  • We anticipate continued strong pricing execution
  • We will continue to leverage our broad global network and reputation for reliability to support our customers in these dynamic times.
  • We are on track to deliver greater than 20% year-over-year adjusted EPS growth.

Headwinds

  • We expect to see a normal seasonal impact on our volumes.
  • We expect to see higher levels of maintenance activity during the fourth quarter.
  • impacts of pandemic-related lockdowns in China
  • continued logistics challenges
  • higher energy and raw material 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 2022

Historical avgQ3 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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