Cabot Microelectronics (CCMP) got here out with quarterly earnings of $1.86 per share, lacking the Zacks Consensus Estimate of $1.99 per share. This compares to earnings of $1.80 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -6.53%. 1 / 4 in the past, it was anticipated that this chip gear maker would publish earnings of $1.94 per share when it really produced earnings of $1.71, delivering a shock of -11.86%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
Cabot, which belongs to the Zacks Electronics – Miscellaneous Merchandise trade, posted revenues of $309.52 million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 0.44%. This compares to year-ago revenues of $274.73 million. The corporate has topped consensus income estimates two occasions over the past 4 quarters.
The sustainability of the inventory’s speedy worth motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Cabot shares have misplaced about 3.6% for the reason that starting of the 12 months versus the S&P 500’s achieve of 17.8%.
What’s Subsequent for Cabot?
Whereas Cabot has underperformed the market up to now this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Cabot was combined. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You’ll be able to see the entire checklist of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $2.17 on $317.25 million in revenues for the approaching quarter and $7.83 on $1.2 billion in revenues for the present fiscal 12 months.
Traders must be aware of the truth that the outlook for the trade can have a fabric impression on the efficiency of the inventory as effectively. By way of the Zacks Business Rank, Electronics – Miscellaneous Merchandise is at the moment within the prime 36% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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