Cabot Microelectronics (CCMP) got here out with quarterly earnings of $1.96 per share, beating the
Cabot Microelectronics (CCMP) got here out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.68 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 13.29%. 1 / 4 in the past, it was anticipated that this chip tools maker would submit earnings of $1.50 per share when it truly produced earnings of $1.80, delivering a shock of 20%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 instances.
Cabot, which belongs to the Zacks Electronics – Miscellaneous Merchandise business, posted revenues of $274.21 million for the quarter ended September 2020, lacking the Zacks Consensus Estimate by 3.23%. This compares to year-ago revenues of $278.65 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.
The sustainability of the inventory’s instant value 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 added about 16.9% for the reason that starting of the 12 months versus the S&P 500’s achieve of 9.7%.
What’s Subsequent for Cabot?
Whereas Cabot has outperformed the market to this point this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple 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 in addition how these expectations have modified these days.
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 formidable monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Cabot was favorable. 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 #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the entire record of right now’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.78 on $286.70 million in revenues for the approaching quarter and $7.85 on $1.19 billion in revenues for the present fiscal 12 months.
Traders ought to be aware of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, Electronics – Miscellaneous Merchandise is at the moment within the prime 50% 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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