Cabot sees 2020 adjusted EPS $3.60-$4.10, consensus $4.30
The company said, "Looking forward to 2020, we don't yet see catalysts to improve the weak macroeconomic conditions and expect a challenging first quarter as customers aggressively manage their year-end inventory levels. Factors expected to positively impact our fiscal 2020 results include the benefits from a full year of the new China fumed silica plant and favorable outcomes of calendar year 2020 Reinforcement Materials customer agreements. We will continue to manage through the volatility in feedstock costs as a result of the new International Marine Organization (IMO) regulation that is impacting both the Reinforcement Materials and Performance Chemicals segments. We expect that Purification Solutions results will improve year-over-year as the benefits from the transformation plan continue. With the sale of the Specialty Fluids business in fiscal 2019, we will not have any EBIT contribution from this business in fiscal 2020. Thus, overall we anticipate fiscal year 2020 adjusted earnings per share to be in the range of $3.60 to $4.10. The mid-point of this range reflects a growth rate of 7% as compared to fiscal 2019 results, excluding the Specialty Fluids segment. Our long-term growth strategy and capital allocation framework will guide our actions and are underpinned by strong cash flow discipline and the strength of our investment grade balance sheet. We will continue to invest in attractive growth projects across our core segments and we remain committed to returning cash to our shareholders."