Market Overview

Cabot Earnings Preview


Cabot (NYSE: CBT) will be releasing its next round of earnings this Monday, November 09. For all of the relevant information, here is your guide for Monday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Cabot earnings of $0.51 per share. Revenue will likely be around $684.48 million, according to the consensus estimate. In the same quarter last year, Cabot reported EPS of $1.05 on revenue of $827.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Monday, earnings would be down 51.43%. Sales would be down 17.23% from the year-ago period. Here is how the Cabot's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate -0.01 0.71 0.74 1.11
EPS Actual -0.07 0.77 0.69 1.05
Revenue Estimate 560.03 M 766.94 M 763.13 M 849.36 M
Revenue Actual 518.00 M 710.00 M 727.00 M 827.00 M

Stock Performance

Shares of Cabot were trading at $41.36 as of November 05. Over the last 52-week period, shares are down 15.99%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cabot is scheduled to hold the call at 08:00:00 ET and can be accessed here.


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Posted-In: Earnings