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Cabot Corporation’s (CBT - Free Report) shares reached a fresh 52-week high of $105.30 on Aug 23 before closing at $104.24.
In the past year, the stock has appreciated 48.3% against the industry’s 6.1% decline in the same period.
Image Source: Zacks Investment Research
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division posted an impressive 8.1% year-over-year sales growth, reaching $332 million. The segment’s EBIT jumped by around 72% to $55 million. The substantial EBIT growth was primarily driven by increased volumes and a more favorable product mix, particularly in the specialized carbons and fumed metal oxide product lines. The upside was fueled by strong demand from the automotive, infrastructure, and semiconductor markets.
Results in the Reinforcement Materials segment were also driven by greater volumes in Europe and Asia Pacific and improved price and product mix in 2024 customer agreements.
Cabot is optimistic about continuing its strong performance in the fiscal fourth quarter. CBT raised its fiscal 2024 adjusted earnings per share (EPS) guidance to a range of $7.00 -$7.10. The projection reflects an increase of 30 cents at the midpoint. The upward revision is based on expected stronger performance in the Performance Chemicals segment, driven by higher demand and an improved product mix, alongside continued strength in the Reinforcement Materials unit.
CBT’s fiscal third-quarter earnings beat expectations, with adjusted EPS of $1.92 per share, surpassing the Zacks Consensus Estimate of $1.74. The company’s earnings consistently outperformed the consensus estimate in each of the trailing four quarters, with an average surprise of 8.6%. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $7.07 per share, suggesting 31.4% year-over-year growth. Notably, the estimate for the current fiscal year has been revised upward by 4% in the past 90 days.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus for NEM’s earnings has increased 16% in the past 60 days.The stock has gained nearly 33.3% in the past year.
The Zacks Consensus Estimate for ESI’s current-year earnings is pegged at $1.42, indicating a rise of 10% from the year-ago levels. ESI’s earnings beat the consensus estimate in three of the last four quarters, with the average surprise being 3.8%. The stock has rallied nearly 30.2% in the past year.
The Zacks Consensus Estimate for AEM’s current year earnings is pegged at $3.65, indicating a year-over-year rise of 63.7%. AEM’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average surprise being 15.7%. The company’s shares have increased 71.2% in the past year.
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Cabot's (CBT) Shares Scale 52-week High: What's Driving It?
Cabot Corporation’s (CBT - Free Report) shares reached a fresh 52-week high of $105.30 on Aug 23 before closing at $104.24.
In the past year, the stock has appreciated 48.3% against the industry’s 6.1% decline in the same period.
Image Source: Zacks Investment Research
What’s Driving Cabot?
In the fiscal third quarter, Cabot's Performance Chemicals division posted an impressive 8.1% year-over-year sales growth, reaching $332 million. The segment’s EBIT jumped by around 72% to $55 million. The substantial EBIT growth was primarily driven by increased volumes and a more favorable product mix, particularly in the specialized carbons and fumed metal oxide product lines. The upside was fueled by strong demand from the automotive, infrastructure, and semiconductor markets.
Results in the Reinforcement Materials segment were also driven by greater volumes in Europe and Asia Pacific and improved price and product mix in 2024 customer agreements.
Cabot is optimistic about continuing its strong performance in the fiscal fourth quarter. CBT raised its fiscal 2024 adjusted earnings per share (EPS) guidance to a range of $7.00 -$7.10. The projection reflects an increase of 30 cents at the midpoint. The upward revision is based on expected stronger performance in the Performance Chemicals segment, driven by higher demand and an improved product mix, alongside continued strength in the Reinforcement Materials unit.
CBT’s fiscal third-quarter earnings beat expectations, with adjusted EPS of $1.92 per share, surpassing the Zacks Consensus Estimate of $1.74. The company’s earnings consistently outperformed the consensus estimate in each of the trailing four quarters, with an average surprise of 8.6%. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $7.07 per share, suggesting 31.4% year-over-year growth. Notably, the estimate for the current fiscal year has been revised upward by 4% in the past 90 days.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Other Key Picks
CBT currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Element Solutions Inc (ESI - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) . Newmont and Element Solutions sport a Zacks Rank #1 (Strong Buy), while Agnico carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus for NEM’s earnings has increased 16% in the past 60 days.The stock has gained nearly 33.3% in the past year.
The Zacks Consensus Estimate for ESI’s current-year earnings is pegged at $1.42, indicating a rise of 10% from the year-ago levels. ESI’s earnings beat the consensus estimate in three of the last four quarters, with the average surprise being 3.8%. The stock has rallied nearly 30.2% in the past year.
The Zacks Consensus Estimate for AEM’s current year earnings is pegged at $3.65, indicating a year-over-year rise of 63.7%. AEM’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average surprise being 15.7%. The company’s shares have increased 71.2% in the past year.