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Sep 30, 2023
Cabot Q4 2023 Earnings Report
Cabot reported Q4 2023 results with diluted EPS of $4.10 and adjusted EPS of $1.65.
Key Takeaways
Cabot Corporation reported a net sales of $965 million for Q4 2023. The diluted EPS was $4.10 and adjusted EPS was $1.65. Cash flows from operations were $138 million and the company returned $73 million to shareholders through dividends and share repurchases.
Fiscal fourth quarter diluted EPS increased 150% year-over-year due to the partial release of a tax valuation allowance in the quarter
Fourth quarter adjusted EPS increased 6% year-over-year driven by higher Reinforcement Materials segment EBIT
Cash Flows from Operations of $138 million in the fiscal fourth quarter driven by strong Reinforcement Materials segment EBIT
Returned cash to shareholders of $73 million in the quarter through $23 million in dividends and $50 million in share repurchases
Cabot
Cabot
Cabot Revenue by Segment
Revenue by Segment
Reinforcement Materials Revenue
CapyFin.comPerformance Chemicals Revenue
CapyFin.com Forward Guidance
Cabot expects the macro-economic environment to remain challenging in fiscal 2024. Despite this, they anticipate fiscal year 2024 adjusted earnings per share to be in the range of $6.30 to $6.80, driven by continued growth in the Reinforcement Materials segment. They also anticipate strong operating cash flow driven by robust EBITDA assuming constant feedstock costs.
Positive Outlook
- Expects fiscal year 2024 adjusted earnings per share to be in the range of $6.30 to $6.80
- Continued growth in our Reinforcement Materials segment.
- Anticipate volume growth in the low single digits in fiscal 2024 along with higher pricing
- Improved product mix in our 2024 calendar year customer agreements to drive year-over-year growth in segment EBIT.
- Expect volumes overall to remain consistent with our fiscal fourth quarter, with some differences across product lines, and for margins to remain stable.
Challenges Ahead
- Expect the macro-economic environment to remain challenging, particularly in the near-term.
- Industry capacity utilization and competition from other specialty chemical companies
- Volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine
- A significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us
- Failure to achieve growth expectations from new products, applications and technology developments
Revenue & Expenses
Visualization of income flow from segment revenue to net income