Cabot Q3 revenue down on challenging demand environment
Overview
Cabot fiscal Q3 adjusted EPS beats analyst expectations, despite 1% yr/yr decline, per LSEG data
Revenue for fiscal Q3 falls to $923 mln amid challenging demand environment
Reinforcement Materials EBIT down 6%, Performance Chemicals EBIT up 4% yr/yr
Outlook
Cabot reaffirms FY25 Adjusted EPS guidance of $7.15 to $7.50
Company expects lower volumes due to tariff uncertainty
Company anticipates earnings growth despite macroeconomic challenges
Result Drivers
REINFORCEMENT MATERIALS - EBIT decline driven by lower volumes in Asia Pacific and the Americas
PERFORMANCE CHEMICALS - EBIT increase due to higher gross profit per ton despite lower volumes
DEMAND CHALLENGES - Uncertainty from tariffs and weaker global macroeconomic environment impacting customer demand
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $1.9 | $1.82 (5 Analysts) |
Q3 Net Income | $101 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy."
Wall Street's median 12-month price target for Cabot Corp is $85.50, about 15.8% above its August 1 closing price of $72.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
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