Cabot Corp. (CBT) Misses Q4 EPS by 9c, Revenues Miss; Offers FY19 Guidance

Cabot Corp. (NYSE: CBT) reported Q4 EPS of $1.00, $0.09 worse than the analyst estimate of $1.09. Revenue for the quarter came in at $850 million versus the consensus estimate of $865.55 million.

Commenting on the outlook for the Company, Keohane said, “Looking forward to fiscal 2019, we believe favorable industry dynamics and Cabot’s leadership positions will enable another year of strong growth. There are some near term uncertainties, largely related to trade tariffs between the US and China as well as some new automotive engine regulations in Europe. These uncertainties are driving certain customers to be cautious in their short-term purchasing behavior, but we do not expect this to have a significant impact on the business. We remain confident in the fundamentals of our business, our leadership positions, and the robustness of the industries we serve and we continue to expect EBIT growth across all segments in fiscal 2019.”

Keohane continued, “Reinforcement Materials is expected to benefit from positive 2019 customer agreements and our strong market position in Asia. We anticipate that Performance Chemicals will return to a more normalized EBIT run-rate after the large turnarounds in the fourth quarter of fiscal 2018, and as we move through the year, we expect the benefits of our recent growth investments to materialize. We expect that Purification Solutions will benefit from a targeted improvement plan that is underway, and we anticipate that Specialty Fluids will continue its recent strong performance into fiscal 2019. Consistent with this outlook, we expect fiscal year 2019 adjusted earnings per share to be in the range of $4.35 to $4.75. Overall, we continue to focus on creating shareholder value by generating strong discretionary free cash flow and reinvesting that into our core businesses as well as returning cash to shareholders. We believe this will result in the optimal balance of long-term growth and a meaningful cash return, leading to top-tier total shareholder return.”

GUIDANCE:

Cabot Corp. sees FY2019 EPS of $4.35-$4.75, versus the consensus of $4.73.

For earnings history and earnings-related data on Cabot Corp. (CBT) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• CaliberCos Inc (CWD) Misses Q2 EPS by 43c; Offers Guidance
• Edible Garden AG (EDBL) Reports Q2 Loss of $18.79