We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cabot Increases Share Repurchase Authorization by 10 Million
Read MoreHide Full Article
Cabot Corporation’s (CBT - Free Report) board has authorized it to buy back up to 10 million additional shares of its common stock, bringing the total number of shares available for repurchase to around 11 million.
Returning cash to shareholders is a critical component of the capital allocation system, and this authorization indicates the company's confidence in its expected earnings performance and cash flow generation over the future years.
Cabot's management will decide when and how many shares will be repurchased based on market circumstances and other criteria. Shares will be repurchased in the open market or privately negotiated transactions, utilizing CBT’s existing liquidity sources and future free cash flow. All repurchased shares will be retired and restored to the status of authorized but unissued common stock of the company. This authorization has no time restriction and can be suspended or terminated at any moment.
Shares of Cabot have gained 42.1% in the past year against a 4.7% rise of the industry.
Image Source: Zacks Investment Research
The company expects fiscal 2025 adjusted earnings per share (EPS) to be between $7.40 and $7.80, led by ongoing growth in the Reinforcement Materials segment and a steady recovery in the Performance Chemicals segment. This adjusted EPS range implies a 5% to 10% rise from the company's solid fiscal 2024 results. Furthermore, Cabot anticipates solid operational cash flow and discretionary free cash flow, driven by strong EBITDA, to enable ongoing investment in growth projects and capital return to shareholders.
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and CF Industries Inc. (CF - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 163.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 16.7% in the past year.
The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 23.2% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cabot Increases Share Repurchase Authorization by 10 Million
Cabot Corporation’s (CBT - Free Report) board has authorized it to buy back up to 10 million additional shares of its common stock, bringing the total number of shares available for repurchase to around 11 million.
Returning cash to shareholders is a critical component of the capital allocation system, and this authorization indicates the company's confidence in its expected earnings performance and cash flow generation over the future years.
Cabot's management will decide when and how many shares will be repurchased based on market circumstances and other criteria. Shares will be repurchased in the open market or privately negotiated transactions, utilizing CBT’s existing liquidity sources and future free cash flow. All repurchased shares will be retired and restored to the status of authorized but unissued common stock of the company. This authorization has no time restriction and can be suspended or terminated at any moment.
Shares of Cabot have gained 42.1% in the past year against a 4.7% rise of the industry.
Image Source: Zacks Investment Research
The company expects fiscal 2025 adjusted earnings per share (EPS) to be between $7.40 and $7.80, led by ongoing growth in the Reinforcement Materials segment and a steady recovery in the Performance Chemicals segment. This adjusted EPS range implies a 5% to 10% rise from the company's solid fiscal 2024 results. Furthermore, Cabot anticipates solid operational cash flow and discretionary free cash flow, driven by strong EBITDA, to enable ongoing investment in growth projects and capital return to shareholders.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
CBT’s Rank & Key Picks
CBT currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and CF Industries Inc. (CF - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 163.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 16.7% in the past year.
The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 23.2% in the past year.