Cabot Corporation CBT recorded a profit of $137 million or $2.43 per share for the fourth quarter of fiscal 2024 (ended Sept. 30, 2024) compared with $234 million or $4.10 in the year-ago quarter. Barring one-time items, adjusted earnings per share (EPS) were $1.80 in the reported quarter, up from $1.65 in the year-ago quarter. The figure, however, missed the Zacks Consensus Estimate of $1.82.

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Net sales increased around 3.7% year over year to $1,001 million in the quarter. It missed the Zacks Consensus Estimate of $1,016.6 million.

Segment Highlights

Reinforcement Materials’ sales increased around 3.2% year over year to $644 million in the reported quarter. It missed the Zacks Consensus Estimate of $648.2 million. Reinforcement Materials' fourth-quarter fiscal 2024 EBIT declined $11 million from the fourth quarter of fiscal 2023. The decline in EBIT was due to reduced volumes in the Americas, a less advantageous regional mix and higher costs, slightly offset by improved pricing and product mix in 2024 customer agreements.

Sales in the Performance Chemicals unit went up around 5.2% year over year to $322 million in the reported quarter. It missed the Zacks Consensus Estimate of $339.9 million. EBIT in Performance Chemicals grew $8 million year over year, owing to a 2% rise in volumes and a more favorable product mix as a result of stronger sales into automotive and electronics end markets. The company's costs also increased throughout the quarter due to the timing of plant maintenance expenses.

CBT’s Fiscal 2024 Results

Cabot's net income was $380 million or $6.72 per share compared with a profit of $445 million or $7.73 a year ago. The adjusted EPS for the fiscal year was $7.06.

Net sales rose around 1.6% year over year to $3,994 million.

CBT’s Financial Position

The company had a cash balance of $223 million at the end of the fiscal fourth quarter. Cash flows from operating activities were $204 million. Capital expenditures totaled $92 million. During the quarter, cash was also used for dividend payments of $24 million and share repurchases of $66 million.

CBT’s Outlook

The company estimates fiscal 2025 adjusted EPS to be between $7.40 and $7.80, led by growth in the Reinforcement Materials segment and a steady recovery in the Performance Chemicals segment. This adjusted EPS range implies a 5% to 10% rise from the company's solid fiscal 2024 results. Furthermore, Cabot anticipates solid operational cash flow and discretionary free cash flow, driven by strong EBITDA, to enable ongoing investment in growth projects and capital return to shareholders.

CBT’s Stock Price Performance

Shares of Cabot have gained 64% in the past year against a 9.5% decline of the industry.

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CBT's Zacks Rank & Other Chemicals Releases

CBT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont de Nemours, Inc. DD logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share. 

The Chemours Company CC recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results. 

PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

 

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