Cabot Earnings: Everything You Must Know Now

Cabot Corp. (NYSE:CBT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Cabot Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 34.38% to $0.63 in the quarter versus EPS of $0.96 in the year-earlier quarter.

Revenue: Decreased 0.24% to $842 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cabot Corp. reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.69. It missed the average revenue estimate of $892.5 million.

Quoting Management: Cabot President and CEO Patrick Prevost, said, “The global macroeconomic environment remained challenging this quarter. Our second quarter results, which included a Reinforcement Materials plant disruption in Japan, were in-line with our first quarter of fiscal 2013. The plant disruption in Japan led to reduced volumes and impacted the business by $8 million pre-tax. We continue to pursue opportunities to improve our global efficiencies and we have announced the closure of our Malaysian carbon black operation. In light of the uncertain global economic environment, we remain focused on prudent cost and cash management.”

Key Stats (on next page)…

Revenue increased 2.68% from $820 million in the previous quarter. EPS decreased 4.55% from $0.66 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.13 to a profit $0.98. For the current year, the average estimate has moved down from a profit of $3.93 to a profit of $3.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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