Why Is Cabot (CBT) Up 0.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Cabot (CBT). Shares have added about 0.9% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cabot due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Cabot's Earnings Top Estimates in Q3, Sales Miss on Lower VolumesCabot recorded third-quarter fiscal 2025 (ended June 30, 2025) earnings of $1.86 per share, down from the year-ago quarter's $1.94.Cabot posted adjusted earnings of $1.90 per share, down from the year-ago quarter's figure of $1.92. Adjusted earnings beat the Zacks Consensus Estimate of $1.80.The company’s net sales in the quarter were $923 million, which missed the Zacks Consensus Estimate of $962.3 million. Net sales fell around 9.2% from the prior-year quarter.Segment HighlightsReinforcement Materials’ sales decreased around 11.7% year over year to $573 million in the reported quarter. Earnings before interest and tax (EBIT) in the segment were $128 million, down around 5.8% 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 3.6% year over year to $320 million. EBIT witnessed an increase of approximately 3.6% to $57 million. The increase in EBIT was primarily the result of higher gross profit per ton, which is partly offset by reduced volumes.FinancialsThe company concluded the third quarter of fiscal 2025 with a cash balance of $239 million. During the quarter, cash flows from operating activities generated $249 million. Capital expenditures for the fiscal third quarter totaled $61 million. During the third quarter, cash was also used to pay dividends of $24 million and to repurchase $40 million of shares.OutlookThe company reaffirmed its fiscal 2025 adjusted EPS guidance of $7.15 to $7.50, noting that ongoing uncertainty around tariffs and the global economy is dampening customer demand, leading to lower volumes in the second half of the year for both the Reinforcement Materials and Performance Chemicals segments. Based on current demand, results are expected to be in the mid-to-lower end of the range, though potentially improved demand in the fourth quarter from recent tariff developments could push results toward the higher end. Despite macroeconomic headwinds, the company still anticipates earnings growth and strong operating cash flow for the year. The company remains focused on cost reductions, operational optimization and disciplined execution, supported by a solid balance sheet that enables investment in growth initiatives and shareholder returns. How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresAt this time, Cabot has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score 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.OutlookEstimates 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.Performance of an Industry PlayerCabot belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Huntsman (HUN), has gained 15.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Huntsman reported revenues of $1.46 billion in the last reported quarter, representing a year-over-year change of -7.4%. EPS of -$0.20 for the same period compares with $0.14 a year ago.For the current quarter, Huntsman is expected to post a loss of $0.12 per share, indicating a change of -220% from the year-ago quarter. The Zacks Consensus Estimate has changed -61.5% over the last 30 days.Huntsman has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Higher. Faster. Sooner. 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Click to get this free report Cabot Corporation (CBT): Free Stock Analysis Report Huntsman Corporation (HUN): 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