Cabot Corp. (CBT) Tops Q4 EPS by 13c, Offers Q1 Guidance

Cabot Corp. (NYSE: CBT) reported Q4 EPS of $0.68, $0.13 better than the analyst estimate of $0.55. Revenue for the quarter came in at $659 million versus the consensus estimate of $675 million.

GUIDANCE:

Cabot Corp. sees Q1 2021 EPS of $0.80-$0.90, versus the consensus of $0.54.

• Commenting on the outlook for the Company, Keohane said, “As we enter fiscal 2021, we are encouraged by the pace of recovery we are seeing in the automotive and tire markets. With this momentum, we expect both year-over-year and sequential EBIT improvement as we look ahead to the first quarter of fiscal 2021. Reinforcement Materials is expected to benefit from improved margins, particularly in Asia, and we anticipate that Performance Chemicals will benefit in both volumes and product mix from a strengthening automotive end market. Based on the current market environment, we expect adjusted earnings per share in the first fiscal quarter to be between $0.80 and $0.90. This expectation assumes that the resurgence in COVID-19 infections will not cause a significant disruption to the ongoing business recovery. Due to continued economic uncertainty related to the impacts of the COVID-19 pandemic, we are not providing fiscal 2021 full-year earnings guidance at this time.”
• Keohane continued, “Our team remains focused on executing our Advancing the Core strategy and emerging from this crisis an even stronger company. Our long-term growth strategy and capital allocation framework guides our actions and is underpinned by strong cash flow discipline and the strength of our investment grade balance sheet. We plan to continue to invest in attractive growth projects across our core segments while exploring strategic alternatives for our Purification Solutions business. We remain committed to returning cash to our shareholders as part of our balanced capital allocation framework and maintaining our investment grade credit rating. I am confident in the fundamental earnings power of our businesses and our long-term growth prospects.”

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

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