NYSE$CBT
Cabot Corporation · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Cabot reported Q4 results with diluted EPS increasing by 228% and adjusted EPS increasing by 40% year-over-year.
Cabot Corporation reported an exceptional year with record adjusted earnings per share that exceeded the prior year performance by 25 percent. Both segments delivered double digit year-over-year EBIT growth, and growth in Battery Materials continues to outpace the market. The company delivered record 2022 adjusted earnings per share that exceeded prior year performance by 25%.
- Diluted EPS increased 228% and Adjusted EPS increased 40% year-over-year driven by higher segment EBIT.
- Segment EBIT increased 24% in Reinforcement Materials and 11% in Performance Chemicals year-over-year.
- Full year revenue up 74% to $132 million and EBITDA up 81% to $29 million in Battery Materials
- Fourth quarter cash flow from operations of $105 million and liquidity remained strong at approximately $1.1 billion.
Headline financials
Revenue & EPS history
Cabot · Revenue · Quarterly
$1.11B
Revenue by segment
Cabot · $1.04B total across 2 segments · Q4 2022
- Reinforcement Materials$700M+42.0%67.4%
- Performance Chemicals$338M+19.0%32.6%
Forward guidance
Looking ahead to fiscal 2023, the company expects the macroeconomic environment to be challenging, particularly in the near-term, and they will need to continue to manage rising inflation, persistently high energy costs, elevated interest rates, and foreign currency exchange headwinds. Despite this challenging environment, the company expects fiscal year 2023 adjusted earnings per share to be in the range of $6.25 to $6.75, driven by continued strength in our Reinforcement Materials segment and above-market growth in Battery Materials.
Tailwinds
- Stable volumes in Reinforcement Materials
- Higher pricing in 2023 calendar year customer agreements to drive year-over-year growth in segment EBIT.
- Volumes in Battery Materials growth vector to grow in excess of 50% year-over-year
- EBITDA in Battery Materials in the range of $45 million to $50 million.
- Strong operating cash flow driven by robust EBITDA and expectation for moderating feedstock costs.
Headwinds
- Challenging macroeconomic environment
- Need to continue to manage rising inflation
- Persistently high energy costs
- Elevated interest rates
- Foreign currency exchange headwinds
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 Q4 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
| Quarter | Report date | Reaction (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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