A month has gone by since the last earnings report for Cabot (CBT Quick QuoteCBT - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cabot due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Cabot's Earnings and Revenues Lag Estimates in Q1, EPS Up Y/Y

Cabot logged a net income of $93 million or $1.67 per share, for the first quarter of fiscal 2025 (ended Dec. 31, 2024), a rise from the prior-year quarter’s profits of $50 million or 88 cents per share.

Barring one-time items, adjusted earnings per share (EPS) were $1.76 in the reported quarter, up from $1.56 in the year-ago quarter. The figure, however, missed the Zacks Consensus Estimate of $1.80.

Sales of $955 million missed the Zacks Consensus Estimate of $993 million. The metric also dropped roughly 0.3% on a year-over-year basis.

Segment Highlights

Reinforcement Materials’ sales decreased 4.7% year over year to $611 million in the reported quarter. It missed the Zacks Consensus Estimate of $664.2 million. Reinforcement Materials' first-quarter fiscal 2025 EBIT increased by $1 million from the first quarter of fiscal 2024. This was largely driven by volume growth and favorable pricing and product mix from the customer agreements for the calendar year 2024.

Sales in the Performance Chemicals unit went up by 9.1% to $311 million in the reported quarter compared to the year-ago quarter’s $285 million. It beat the Zacks Consensus Estimate of $296.1 million. EBIT in Performance Chemicals grew $11 million year over year, owing to an 8% rise in volumes because of underlying demand drivers in key end markets.

Financial Position

The company had a cash balance of $183 million at the end of the fiscal first quarter. Cash flows from operating activities were $124 million. Capital expenditures totaled $77 million. During the quarter, cash was also used for dividend payments of $24 million and share repurchases of $42 million.

Outlook

Cabot expects adjusted earnings per share for fiscal 2025 to range between $7.40 and $7.80, factoring in business segment results and customer agreements. The outlook considers foreign exchange rates and interest rate projections but excludes potential tariff impacts. Strong operating cash flow is anticipated, supporting strategic growth investments and shareholder returns. The company remains confident in its execution capabilities and ability to navigate market conditions. Cabot continues to advance its "Creating for Tomorrow" strategy, aiming for long-term value creation.



 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -5.44% due to these changes.

VGM Scores

At this time, Cabot has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cabot has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.