Caesarstone (NASDAQ:CSTE) Posts Earnings Results, Beats Estimates By $0.16 EPS

Caesarstone (NASDAQ:CSTE) issued its earnings results on Wednesday. The construction company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.16, FiscalAI reports. The business had revenue of $96.55 million for the quarter, compared to analyst estimates of $102.50 million. Caesarstone had a negative net margin of 37.37% and a negative return on equity of 29.38%.

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

• Profitability improved materially: gross margin rose to 24% from 19.6% a year ago, while adjusted EBITDA loss narrowed to $1 million from $6.4 million, supported by restructuring savings and the transition to production partners.
• Revenue declined 7.7% year over year on a constant-currency basis to $96.6 million, with U.S. revenue down 14.1% amid weak commercial and stone-supplier channels; management said restoring revenue growth remains a top priority.
• Australia delivered its fourth consecutive quarter of growth, with constant-currency revenue up 10.1%, while the big-box channel in the U.S. grew 3%, led by IKEA.
• A new U.S. tariff-rate quota on imported quartz products takes effect August 15, including additional tariffs of 25% within quota and 50% above quota in the first year. Caesarstone is assessing the impact and has reassessed the timing of its goal to achieve positive adjusted EBITDA.
• The company reported approximately 800 silica-related injury claims and a $51.2 million provision for probable and reasonably estimable losses, while insurance coverage disputes remain ongoing.

Caesarstone Stock Down 5.2%

Caesarstone stock traded down $0.12 during mid-day trading on Thursday, hitting $2.20. 253,066 shares of the company were exchanged, compared to its average volume of 100,063. The business has a fifty day moving average of $2.07 and a 200 day moving average of $1.75. Caesarstone has a 1-year low of $0.56 and a 1-year high of $2.62. The company has a market capitalization of $76.05 million, a PE ratio of -0.53 and a beta of 0.37.

Institutional Investors Weigh In On Caesarstone

Institutional investors and hedge funds have recently made changes to their positions in the company. Pitcairn Co. acquired a new stake in Caesarstone during the 2nd quarter valued at $31,000. Virtu Financial LLC acquired a new position in Caesarstone in the fourth quarter worth $30,000. Qube Research & Technologies Ltd acquired a new position in Caesarstone in 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. Institutional investors and hedge funds own 33.70% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen upgraded shares of Caesarstone from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 27th. One analyst has rated the stock with a Sell rating, According to MarketBeat, the stock presently has an average 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.