Cabot Beats on EPS but GAAP Results Lag
Cabot (NYS: CBT) reported earnings Feb. 1. Here are the numbers you need to know.
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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At the time this article was published 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 ofMotley 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.
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