The 10-second takeaway
For the quarter ended June 30 (Q3), Cabot missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped.
Margins shrank across the board.
Cabot notched revenue of $903.0 million. The three analysts polled by S&P Capital IQ hoped for revenue of $931.0 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $846.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.84. The six earnings estimates compiled by S&P Capital IQ averaged $0.91 per share. Non-GAAP EPS of $0.84 for Q3 were 16% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included $0.06 per share in earnings from discontinued operations.) GAAP EPS of $0.90 for Q3 were 12% lower than the prior-year quarter's $1.02 per share. (The prior-year quarter included $0.06 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 19.6%, 130 basis points worse than the prior-year quarter. Operating margin was 9.5%, 200 basis points worse than the prior-year quarter. Net margin was 6.5%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $895.7 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $3.48 billion. The average EPS estimate is $3.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 82 members out of 90 rating the stock outperform, and eight members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Cabot a green thumbs-up, and one give 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 $45.50.
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