- Cabot Corp‘s net sales and operating revenue reported at $955 million, falling short of the estimated $993.8 million.
- Reinforcement materials sales registered at $611 million, below the forecast of $663.4 million.
- Performance Chemicals segment sales exceeded expectations with $311 million against an estimate of $304.9 million.
- Adjusted earnings per share (EPS) came in at $1.76, slightly higher than the projected $1.74.
- Reinforcement materials EBIT was reported at $130 million, not meeting the $137.1 million estimated by analysts.
- The Performance Chemicals segment EBIT stood at $45 million, surpassing the expectation of $43.5 million.
- Cabot Corp maintains its year forecast for adjusted EPS in the range of $7.40 to $7.80, aligning closely with the estimation of $7.61.
- CEO Keohane highlighted volume growth in Asia Pacific and Europe, Middle East, and Africa regions as a driver for EBIT in the reinforcement materials segment.
- The Performance Chemicals segment saw a 32% EBIT growth year-over-year due to improved volumes and demand in key markets.
- Market recommendations include 2 buys, 2 holds, and 1 sell for Cabot Corp.
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A look at Cabot Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at Cabot Corp‘s long-term outlook using the Smartkarma Smart Scores, the company seems to have a favorable standing. With a Growth score of 4 out of 5, Cabot is positioned well for future expansion and development. This indicates a positive trajectory for the company’s growth potential in the coming years. Additionally, the company has solid scores in Value, Dividend, and Resilience, all coming in at a score of 3. These scores suggest that Cabot is maintaining a good balance in terms of financial value, dividend payouts, and ability to withstand market fluctuations, showcasing a stable foundation for its operations.
However, the Momentum score of 2 suggests that Cabot Corp might be facing some challenges in terms of market momentum and investor sentiment. Despite this, with strong scores in other key areas, Cabot Corporation’s overall outlook appears promising for long-term investors. The company’s diverse range of businesses in chemicals, performance materials, and specialty fluids, including the manufacture and sale of various products, positions it well for continued growth and stability in the years to come.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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