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Cabot (CBT) Issues an Update on Business Results for Q4

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Cabot Corporation (CBT - Free Report) recently issued an update on business results for fourth-quarter fiscal 2020. The company stated that volumes continued to recover in the fiscal fourth quarter on a sequential comparison basis.

In the Reinforcement Materials unit, the company expects EBIT to be $59 million for the fiscal fourth quarter, which will be driven by a 56% surge in volumes compared with the prior-quarter levels.

In the Performance Chemicals unit, Cabot expects EBIT to be $25 million in the fiscal fourth quarter. Margins are expected to be driven by a 1% rise in volumes in Formulated Solutions and 3% increase in volumes in Performance Additives compared with prior-quarter levels.

In the Purification Solutions unit, the company expects EBIT to be breakeven in the to-be-reported quarter.

For the fiscal fourth quarter, Cabot anticipates cash flow from operations to be around $100 million. The same is expected to be around $250 million for the second half of fiscal 2020, higher than the previously-announced expectation of $200 million.

Cabot rescheduled the release of operating results for the fourth quarter and fiscal 2020 to Nov 23.

Shares of Cabot have lost 13.3% in the past year compared with the industry’s 1.7% decline.

Zacks Rank & Key Picks

Cabot currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Northern Dynasty Minerals, Ltd. (NAK - Free Report) and B2Gold Corp (BTG - Free Report) . While Agnico Eagle sports a Zacks Rank #1 (Strong Buy), Northern Dynasty Minerals and B2Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 103.1% for 2020. Its shares have returned 45.5% in the past year.

Northern Dynasty Minerals has an expected earnings growth rate of 42.9% for 2020. The company’s shares have surged 33.9% in the past year.

B2Gold has an expected earnings growth rate of 257.1% for 2020. The company’s shares have gained 104.1% in the past year.

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