Cabot Corp (CBT) Reports Fiscal Year 2023 Diluted EPS of $7.73 and Adjusted EPS of $5.38
Fiscal Year 2023 Diluted EPS of $7.73 and Adjusted EPS of $5.38
Fourth quarter diluted EPS increased 150% year-over-year
Fourth quarter adjusted EPS increased 6% year-over-year
Returned cash to shareholders of $73 million in the quarter
On November 6, 2023, Cabot Corp (NYSE:CBT) announced its fourth quarter and fiscal year 2023 results. The company reported a fiscal year 2023 diluted EPS of $7.73 and adjusted EPS of $5.38. The fourth quarter diluted EPS increased 150% year-over-year due to the partial release of a tax valuation allowance in the quarter. The adjusted EPS increased 6% year-over-year driven by higher Reinforcement Materials segment EBIT. The company returned $73 million to shareholders in the quarter through $23 million in dividends and $50 million in share repurchases.
Financial Highlights
For the fourth quarter of fiscal 2023, net income attributable to Cabot Corp was $234 million ($4.10 per diluted common share). Adjusted EPS for the fourth quarter of fiscal 2023 was $1.65 per share. The company ended the fourth quarter of fiscal 2023 with a cash balance of $238 million. During the fourth quarter of fiscal 2023, cash flows from operating activities were a source of $138 million. Capital expenditures for the fourth quarter of fiscal 2023 were $78 million. Additional uses of cash during the fourth quarter included $23 million for the payment of dividends and $50 million for share repurchases.
Segment Results
Reinforcement Materials Fourth quarter fiscal 2023 EBIT in Reinforcement Materials increased by $25 million compared to the fourth quarter of fiscal 2022. The increase in EBIT was principally driven by improved unit margins from better pricing and product mix in our calendar year 2023 customer agreements. Volumes declined by 2% due to lower volumes in the Americas and EMEA, partially offset by higher volumes in Asia, particularly in China.
Performance Chemicals Fourth quarter fiscal 2023 EBIT in Performance Chemicals decreased by $13 million compared to the fourth quarter of fiscal 2022 primarily due to lower unit margins from a less favorable product mix in the specialty carbons and fumed metal oxides product lines and pricing pressures in the fumed metal oxides and battery materials product lines.
Outlook
Looking ahead to fiscal 2024, Cabot Corp expects the macro-economic environment to remain challenging, particularly in the near-term. Despite this challenging environment, the company expects 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. In addition, the company anticipates strong operating cash flow driven by robust EBITDA assuming constant feedstock costs.
Explore the complete 8-K earnings release (here) from Cabot Corp for further details.
This article first appeared on GuruFocus.
