Canada Markets open in 7 hrs 53 mins
Cabot (CBT) to Divest Purification Solutions Unit for $111M
UNVR
November 30, 2021, 6:13 p.m. ·4 min read
Cabot Corporation CBT recently entered into an agreement to sell its Purification Solutions business to One Equity Partners, a middle-market private equity firm. The transaction, valued at $111 million and expected to close in the second quarter of fiscal 2022, is subject to customary closing conditions and applicable works council consultations.
Cabot's Purification Solutions business is a renowned player in the research, development, manufacturing, and sale of high-performing activated carbon used in a range of environmental, health, safety, and industrial applications.
The company expects to recognize a pre-tax impairment charge in the range of $155-$165 million in the first quarter of fiscal 2022 in relation to the sale, with net cash proceeds from the transaction expected to be roughly $80 million.
While Credit Suisse is acting as the financial advisor, K&L Gates is giving legal counsel to Cabot for the transaction.
Cabot is enthusiastic about the deal as One Equity Partners has a proven track record of advancing market-leading industrial companies. The transaction will allow the company to channel its resources on its core business segments and invest in units with strong future growth and innovation potential, such as Battery Materials.
Cabot's shares have risen 31% over the past year, outperforming the 15.2% rise of the industry.
In the fourth quarter of fiscal 2021, Cabot reported adjusted earnings of $1.11 per share, topping the Zacks Consensus Estimate of $1.02. Revenues were $904 million in the quarter, which jumped 37.2% year over year but missed the Zacks Consensus Estimate of $924.5 million.
In its fourth-quarter earnings call, Cabot stated that it expects continued strong end-market demand and benefits from growth investments. It expects to benefit from higher volumes driven by strong forecasted levels of tire production and higher pricing in the Reinforcement Materials segment. In the Performance Chemicals segment, Cabot projects continued demand growth across its broad set of applications, with particular strength in battery materials and inkjet packaging.
The company also expects challenges such as rising input costs, global supply-chain disruptions and the semiconductor chip shortage to moderate through the next fiscal year. The company expects adjusted earnings per share for fiscal 2022 in the range of $5.20-$5.60.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Zacks Rank & Key Picks
Cabot currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks from the basic materials space include Univar Solutions Inc. UNVR and AdvanSix Inc. ASIX sporting a Zacks Rank #1 (Strong Buy), and Celanese Corp. CE carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9% upward over the past 60 days.
Univar beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 24.1%, on average. UNVR's shares have rallied 50.5% over a year.
AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 14.1% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 47%, on average. ASIX's shares have also surged 157.4% over a year.
Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9.1% upward over the last 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in the four trailing quarters and pulled off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 22.6% over a year.
Celanese Corporation (CE) : Free Stock Analysis Report
Cabot Corporation (CBT) : Free Stock Analysis Report
Univar Solutions Inc. (UNVR) : Free Stock Analysis Report
AdvanSix (ASIX) : Free Stock Analysis Report
Why First Majestic Silver Stock Popped 12% Today
Solid Q4 production numbers, stellar outlook guidance, and surging silver prices are helping First Majestic Silver stock rally today. The post Why First Majestic Silver Stock Popped 12% Today appeared first on The Motley Fool Canada.
WASHINGTON (AP) — President Joe Biden said Wednesday he thinks Russia will invade Ukraine and warned President Vladimir Putin that his country would pay a "dear price" in lives lost and a possible cutoff from the global banking system if it does. Biden, speaking at a news conference to mark his one-year anniversary in office, also said a "minor incursion" by Russia would elicit a lesser response. He later sought to clarify that he was referring to a non-military action, such as a cyberattack, th
NY AG seeks testimony from Trump, his children over financial dealings
New York Attorney General Letitia James said late on Tuesday that former U.S. President Donald J. Trump's family organization used "fraudulent or misleading" asset valuations to obtain economic benefits, including loans, insurance coverage, and tax deductions. James also took legal action to compel Trump and his adult children Donald Trump Jr. and Ivanka Trump to appear for sworn testimony as part of her office's civil investigation into the Trump Organization's financial dealings. "Thus far in our investigation, we have uncovered significant evidence that suggests Donald J. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit," James said in a statement.
Pickle Crow Gold Project, Canada
AuTECO Minerals Ltd (AUT.ASX) is pleased to report more outstanding drilling results which will help underpin a Resource update set for release next month.
Unilever will not raise rejected 50 billion pound bid for GSK consumer arm
U.S.-listed shares of Unilever rose 10.1% on the news, while GSK's fell 2.8% . GSK has rejected three bids from Unilever for its consumer arm, which is home to brands such as Sensodyne toothpaste, Emergen-C vitamin supplement and Panadol painkiller, saying the bids "fundamentally undervalued" the business and its prospects. A spokesperson for GSK responded that the firm, in which U.S. drugs company Pfizer owns a 32% stake, was strongly focused on maximising shareholder value and very confident in the future of the business and its potential.
Charlotte's Web Gummies Launching at GNC Locations Across 24 States
(TSX:CWEB) (OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web," or the "Company"), the market leader in full spectrum hemp extract products, today announced a national distribution agreement with GNC, a leading specialty retailer of nutritional products with more than 2,000 locations in the United States. Initial shipments of six varieties of Charlotte's Web Gummies will be available for purchase at GNC retail locations across 24 states, with the intent to expand into additional stat
Canadian inflation hits 30-year high, boosting chance of early rate hike
OTTAWA (Reuters) -Canada's annual inflation rate accelerated in December to hit a 30-year high, data showed on Wednesday, bolstering expectations the central bank could hike interest rates as soon as next week. Inflation rose to 4.8%, in line with analyst expectations and the highest print since it reached 5.5% in September 1991, Statistics Canada said. It was the ninth consecutive month in which headline inflation topped the Bank of Canada's 1% to 3% control range.
December marks 3rd straight month of growth for US builders
SILVER SPRING, Md. (AP) — Construction of new homes in the U.S. rose for the third consecutive month in December and data released Wednesday suggests that the frantic pace of building will continue this year. The December increase puts home construction at a seasonally adjusted annual rate of 1.7 million units, the Commerce Department reported Wednesday. In all of 2021, nearly 1.6 million housing units were started a 15.6% increase over 2020. The December housing data was boosted by multi-unit p
Explainer-Do 5G telecoms pose a threat to airline safety?
The Federal Aviation Administration (FAA) had warned that potential 5G interference could affect altitude readings on some jets, with airlines citing the Boeing 777 among the models in the spotlight. Despite an announcement by AT&T and Verizon that they would pause the 5G rollout https://www.reuters.com/business/aerospace-defense/biden-administration-talks-head-off-5g-aviation-standoff-2022-01-18 near airports, several airlines still cancelled flights or switched aircraft models. The United States auctioned mid-range 5G bandwidth to mobile phone companies in early 2021 in the 3.7-3.98 GHz range on the spectrum known as C band, for about $80 billion.
Wall Street banks eye 'new normal' for trading revenue after stellar two years
A massive injection of cash into capital markets by the Federal Reserve led to unprecedented liquidity and trading activity through the pandemic as investors sought opportunities to cash in. Banks with large trading desks such as Goldman Sachs, JPMorgan and Morgan Stanley have been the biggest beneficiaries of market volatility, enabling traders to enjoy their best period since the 2007-09 financial crisis. "None of us could have anticipated the environment that we've lived through over the last two years and particularly the environment this year, which was obviously a significant tailwind for our business," Goldman Sachs' chief executive, David Solomon, told analysts after the bank on Tuesday posted earnings that fell short of market forecasts.
OneShield Appoints Rex Blazevich to Executive Leadership Team
OneShield Software (www.OneShield.com), a preeminent and innovative provider of core software solutions to P&C insurance companies, is pleased to announce the appointment of Rex Blazevich as Senior Vice President Business Intelligence and Transformation. Reporting to CEO Cameron Parker, Rex will lead the design and execution of optimized business processes to prepare the company for greater scale.
Aurion-B2Gold JV Extend Gold Mineralization at Helmi
Aurion Resources Ltd. (TSXV: AU) (OTCQX: AIRRF) ("Aurion" or the "Company") reports results for 4 holes drilled at the Helmi Discovery on the Aurion-B2Gold Corp. (TSX: BTO) ("B2Gold") Joint Venture (JV) in the Central Lapland Greenstone Belt in northern Finland.
WASHINGTON (AP) — With traffic fatalities spiking higher, the nation's top safety investigator says a widely cited government statistic that 94% of serious crashes are solely due to driver error is misleading and that the Transportation Department should stop using it. Jennifer Homendy, the chair of the National Transportation Safety Board, told The Associated Press on Tuesday that she's surprised the wording remains on the department's website even as the Biden administration pledges to embark
Kinder Morgan profit tops expectations on higher gasoline, jet fuel volumes
Global jet fuel demand, however, has again come under pressure with some countries reimposing border restrictions and other curbs to keep the Omicron coronavirus variant at bay, prompting travelers to reconsider their plans. "We saw a little bit more downside momentum on jet fuel due to omicron variant, but combined, we didn't really see a meaningful impact as we exited the year," senior executive Dax Sanders said in the earnings call. Kinder Morgan reported a 48% jump in jet fuel volumes and 7% jump in gasoline, following a year of coronavirus-driven decline.