Cabot Q1 Earnings Beat Estimates, Sales Down Y/Y on Lower Volumes

Cabot Corporation CBT recorded first-quarter fiscal 2026 (ended Dec. 31, 2025) earnings of $1.37 per share, down from the year-ago quarter's figure of $1.67.CBT posted adjusted earnings of $1.53 per share, down from the year-ago quarter figure of $1.76. However, adjusted earnings outpaced the Zacks Consensus Estimate of $1.40.The company’s net sales in the quarter were $849 million, which missed the Zacks Consensus Estimate of $881.9 million. Net sales fell around 11.1% from the prior-year quarter.Cabot Corporation Price, Consensus and EPS Surprise Cabot Corporation price-consensus-eps-surprise-chart | Cabot Corporation QuoteCBT’s Segment HighlightsReinforcement Materials’ sales decreased around 14.9% year over year to $520 million in the reported quarter. It missed the Zacks Consensus Estimate of $549 million. Earnings before interest and tax (EBIT) in the segment were $102 million, down around 21.54% from the year-ago quarter. The decline in EBIT was primarily due to lower volumes in the Asia Pacific and the Americas. In the reported quarter, sales in the Performance Chemicals division declined 3.5% year over year to $300 million. It also missed the Zacks Consensus Estimate of $304 million. EBIT witnessed an increase of approximately 6.7% to $48 million. The rise in EBIT was mainly due to a higher gross profit per ton from a favorable product mix and overall cost management and optimization efforts. This was partly offset by lower volumes due to weak demand in Europe.CBT’s FinancialsThe company concluded the first quarter of fiscal 2026 with a cash balance of $230 million. During the quarter, cash flows from operating activities were $126 million. Capital expenditures for the fiscal first quarter totaled $69 million. During the fiscal first quarter, cash was also used to pay dividends of $24 million and $52 million for share repurchases. CBT’s OutlookThe company sees continued weakness in regional demand for Reinforcement Materials stemming from elevated Asian tire imports into Western markets. It expects a narrower adjusted EPS for the fiscal year to range between $6.00 and $6.50 compared to the previous expectation of $6.00 to $7.00. The fiscal 2026 outlook incorporates the ongoing outcome of negotiations in the tire customer agreements and competitive pressures within Reinforcement Materials.In contrast, it expects Performance Chemicals to deliver earnings growth, supported by strength in Battery Materials and opportunities across infrastructure, alternative energy and consumer-focused applications. It also anticipates benefits from cost reductions, optimization actions and capacity rationalization.CBT’s Price PerformanceShares of Cabot have lost 18.3% in the past year compared with the 20.3% decline of the industry. Image Source: Zacks Investment ResearchCBT’s Zacks Rank & Key PicksCBT currently carries a Zacks Rank #3 (Hold). Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation ALB, Coeur Mining, Inc. CDE and Avino Silver & Gold Mines Ltd. ASM.Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 53 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average earnings surprise being 35.28%. ALB sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in three of the last two quarters and missed once, with the average earnings surprise being 106.61%. CDE currently sports a Zacks Rank #1. Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB): Free Stock Analysis Report Cabot Corporation (CBT): Free Stock Analysis Report Coeur Mining, Inc. (CDE): Free Stock Analysis Report Avino Silver (ASM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks