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Cabot Corporation CBT logged net income of $93 million or $1.67 per share for the first quarter of fiscal 2025 (ended Dec. 31, 2024), a rise from the prior-year quarter’s profits of $50 million or 88 cents per share.
Barring one-time items, adjusted earnings per share (EPS) were $1.76 in the reported quarter, up from $1.56 in the year-ago quarter. The figure, however, missed the Zacks Consensus Estimate of $1.80.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Sales of $955 million missed the Zacks Consensus Estimate of $993 million. The metric also dropped roughly 0.3% on a year-over-year basis.
Cabot Corporation Price, Consensus and EPS Surprise
Cabot Corporation price-consensus-eps-surprise-chart | Cabot Corporation Quote
CBT’s Segment Highlights
Reinforcement Materials’ sales decreased 4.7% year over year to $611 million in the reported quarter. It missed the Zacks Consensus Estimate of $664.2 million. Reinforcement Materials' first-quarter fiscal 2025 EBIT increased by $1 million from the first quarter of fiscal 2024. This was largely driven by volume growth and favorable pricing and product mix from calendar year 2024’s customer agreements.
Sales in the Performance Chemicals unit went up by 9.1% to $311 million in the reported quarter compared to the year-ago quarter’s $285 million. It beat the Zacks Consensus Estimate of $296.1 million. EBIT in Performance Chemicals grew $11 million year over year, owing to an 8% rise in volumes because of underlying demand drivers in key end markets.
CBT’s Financial Position
The company had a cash balance of $183 million at the end of the fiscal first quarter. Cash flows from operating activities were $124 million. Capital expenditures totaled $77 million. During the quarter, cash was also used for dividend payments of $24 million and share repurchases of $42 million.
CBT’s Outlook
Cabot expects adjusted earnings per share for fiscal 2025 to range between $7.40 and $7.80, factoring in business segment results and customer agreements. The outlook considers foreign exchange rates and interest rate projections but excludes potential tariff impacts. Strong operating cash flow is anticipated, supporting strategic growth investments and shareholder returns. The company remains confident in its execution capabilities and ability to navigate market conditions. Cabot continues to advance its "Creating for Tomorrow" strategy, aiming for long-term value creation.
CBT Stock’s Price Performance
CBT stock has gained 19.3% in the past year compared with the 5% growth of the industry.