Cabot misses by $0.09, misses on revs
Reports Q3 (Jun) earnings of $0.64 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $0.73; revenues fell 26.2% year/year to $694 mln vs the $774.89 mln consensus.
- Margin pressure in Reinforcement Materials and lower project activity in Specialty Fluids led to lower earnings year over year
- Record results for Performance Chemicals
- Company remains highly focused on managing costs and cash flow.
- "Looking ahead, we expect the markets for the Performance Chemicals segment to remain strong in both specialty carbons and metal oxides. The outlook for Reinforcement Materials is mixed," Prevost continued, "with strengthening developed economies and sluggish emerging markets. Although the recent Supreme Court decision on MATS has resulted in greater uncertainty for the mercury removal business, we expect that Purification Solutions will continue to operate at current EBITDA run rates in the near term. The Specialty Fluids business continues to work on a broad portfolio of future project options but the short-term outlook remains challenging."