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Bear Of The Day: Cabot Corporation (CBT)

Brian Bolan

Cabot Corporation (CBT) is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day today.  Let's take a look at why this stock has the lowest of all Zacks Ranks.

Description

Cabot Corporation is a leading global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, USA. Our businesses deliver a broad range of products and solutions to customers in every corner of the globe, serving key industries such as transportation, infrastructure, environment and consumer. Cabot Corporation provides performance solutions that solve customers' challenges today while preparing them to meet tomorrow's needs. Cabot is a leading provider of rubber and specialty carbon blacks, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, aerogel, and elastomer composites.

Earnings History

As I look at the detailed esitmates page, I see an ok earnings history for CBT. The company has topped the Zacks Consensus Estimate in 2 of the last four quarters and the other two quarters were misses.

The average surprise over the last four quarters is -1.92%, so the beats were just a little smaller than the loss.  We don't want to see that as investors.

Recent Earnings

I see the reent beat of a penny also came with guidance that was below consensus.  THe company now expects to see FY19 EPS of $4.05 - $4.30, and that is below the prior guide of $4.20 - $4.60.  

Estimate Revisions

Following the beat and guide lower, estimates have dropped.  This quarter the Zacks Consensus has dropped from $1.25 to $1.00.  That is a big move lower.  Next quarter has only seen a small move of 2 cents lower.

The full year estimate is at $4.13, but that is down from the $4.39 level it was at prior to earnings.

Next year has also taken a hit.  The Zacks Consensus Estimate has slipped from $4.93 to $4.66.

Chart

 

Cabot Corporation Price and Consensus

Cabot Corporation Price and Consensus

Cabot Corporation price-consensus-chart | Cabot Corporation Quote

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