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Cabot Q4 adj EPS beats on strong chemicals segment

By Reuters News


Overview

  • US specialty chemicals maker's fiscal Q4 adjusted EPS beat analyst expectations

  • Quarterly revenue rose yr/yr, driven by Performance Chemicals segment

  • Company signed $50 mln US Energy Dept grant for battery materials expansion


Outlook

  • Cabot expects fiscal 2027 Adjusted EPS between $6.15 and $6.75

  • Company anticipates increasing volumes in battery materials, electronics, and strategic customer accounts

  • Cabot expects to maintain solid margins while managing volatile energy input costs and competitive pressures


Result Drivers

  • PERFORMANCE CHEMICALS - Co said Q4 adjusted EPS was driven by robust Performance Chemicals segment results

  • REINFORCEMENT MATERIALS - Q4 EBIT in Reinforcement Materials declined due to lower gross profit per ton, partially offset by higher volumes in Asia Pacific and Americas

  • BATTERY MATERIALS - Co achieved new high in battery materials EBITDA and signed $50 mln U.S. Energy Dept grant to expand domestic production


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Beat

$1.61

$1.55 (6 Analysts)

Q4 Net Income

$66 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the specialty chemicals peer group is "buy."

  • Wall Street's median 12-month price target for Cabot Corp is $90.00, about 20.9% above its October 30 closing price of $74.43

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 2 - Huntsman Q3 revenue beats estimates on higher sales volumes

  • Nov 2 - Celanese Q3 sales rise 6%

  • Nov 2 - Valaris Ltd Q3 revenue rises 10% on drillship contracts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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