Caesarstone (NASDAQ:CSTE) Announces Quarterly Earnings Results

Caesarstone (NASDAQ:CSTE) issued its quarterly earnings data on Wednesday. The construction company reported ($0.32) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.03, Zacks reports. The business had revenue of $88.71 million for the quarter, compared to the consensus estimate of $97.80 million. Caesarstone had a negative return on equity of 24.33% and a negative net margin of 34.60%.

Here are the key takeaways from Caesarstone’s conference call:

• Gross margin improved by 100 basis points year over year to 22.3%, despite lower revenue, as Caesarstone’s shift to a third-party manufacturing model and leaner production footprint began to flow through the P&L.
• Revenue declined 14.9% on a constant-currency basis to $88.7 million, with weakness in North America, Canada, and Israel outweighing growth in Australia.
• Australia remained a bright spot, with revenue up 11.2% constant currency for the third straight quarter of growth, supported by increasing adoption of the company’s ICON products.
• Restructuring savings are tracking ahead, with Caesarstone expecting more than $100 million of annual cash savings by 2027 and additional 2026 restructuring cash costs of about $3 million to $5 million.
• Near-term headwinds remain significant, including roughly 15% average U.S. import tariffs, ITC remedy uncertainty, conflict-related pressure in Israel, and ongoing silica litigation with 711 claims outstanding.

Caesarstone Price Performance

Shares of NASDAQ CSTE traded up $0.09 during trading hours on Thursday, reaching $1.58. The stock had a trading volume of 144,532 shares, compared to its average volume of 772,601. The business’s fifty day moving average is $1.21 and its two-hundred day moving average is $1.52. The company has a market cap of $54.62 million, a price-to-earnings ratio of -0.40 and a beta of 0.23. Caesarstone has a twelve month low of $0.56 and a twelve month high of $2.58.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CSTE. Virtu Financial LLC acquired a new position in Caesarstone during the fourth quarter worth $30,000. Pitcairn Co. bought a new stake in shares of Caesarstone during the second quarter worth $31,000. Qube Research & Technologies Ltd bought a new stake in shares of Caesarstone during the second quarter worth $56,000. Citadel Advisors LLC grew its holdings in shares of Caesarstone by 163.7% during the third quarter. Citadel Advisors LLC now owns 63,589 shares of the construction company’s stock worth $101,000 after purchasing an additional 39,474 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in shares of Caesarstone during the second quarter worth $263,000. 33.70% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Caesarstone from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 9th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat, Caesarstone currently has a consensus rating of “Sell”.

About Caesarstone

Caesarstone Ltd. is an Israel-based manufacturer specializing in engineered quartz surfaces for residential and commercial applications. The company’s core business centers on the design, production and marketing of quartz slabs and tiles used for kitchen countertops, bathroom vanities, flooring and wall cladding. Caesarstone’s products combine natural quartz with resins and pigments to deliver durable, low-maintenance surfaces known for their aesthetic versatility and resistance to scratches, stains and heat.

Founded in 1987 and headquartered at Kibbutz Sdot Yam, Israel, Caesarstone has grown into a global brand with distribution in over 50 countries.