Cabot Corporation
CBT
recently issued an update on business results for fourth-quarter fiscal 2020. The company stated that volumes continued to recover in the fiscal fourth quarter on a sequential comparison basis.
In the Reinforcement Materials unit, the company expects EBIT to be $59 million for the fiscal fourth quarter, which will be driven by a 56% surge in volumes compared with the prior-quarter levels.
In the Performance Chemicals unit, Cabot expects EBIT to be $25 million in the fiscal fourth quarter. Margins are expected to be driven by a 1% rise in volumes in Formulated Solutions and 3% increase in volumes in Performance Additives compared with prior-quarter levels.
In the Purification Solutions unit, the company expects EBIT to be breakeven in the to-be-reported quarter.
For the fiscal fourth quarter, Cabot anticipates cash flow from operations to be around $100 million. The same is expected to be around $250 million for the second half of fiscal 2020, higher than the previously-announced expectation of $200 million.
Cabot rescheduled the release of operating results for the fourth quarter and fiscal 2020 to Nov 23.
Shares of Cabot have lost 13.3% in the past year compared with the
industry
’s 1.7% decline.
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Zacks Rank & Key Picks
Cabot currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Agnico Eagle Mines Limited
AEM
,
Northern Dynasty Minerals, Ltd.
NAK
and
B2Gold Corp
BTG
. While Agnico Eagle sports a Zacks Rank #1 (Strong Buy), Northern Dynasty Minerals and B2Gold carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Agnico Eagle has an expected earnings growth rate of 103.1% for 2020. Its shares have returned 45.5% in the past year.
Northern Dynasty Minerals has an expected earnings growth rate of 42.9% for 2020. The company’s shares have surged 33.9% in the past year.
B2Gold has an expected earnings growth rate of 257.1% for 2020. The company’s shares have gained 104.1% in the past year.
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