The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Cabot missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Cabot tallied revenue of $762.0 million. The three analysts polled by S&P Capital IQ looked for a top line of $796.0 million. Sales were 1.2% higher than the prior-year quarter's $753.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.61. The six earnings estimates compiled by S&P Capital IQ predicted $0.56 per share on the same basis. GAAP EPS of $0.72 for Q1 were 36% lower than the prior-year quarter's $1.13 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 18.8%, 260 basis points worse than the prior-year quarter. Operating margin was 8.0%, 280 basis points worse than the prior-year quarter. Net margin was 6.0%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $821.3 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $2.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 67 members rating the stock outperform and five members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Cabot a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot is outperform, with an average price target of $40.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.