Caesarstone (NASDAQ:CSTE) Issues Earnings Results

Caesarstone (NASDAQ:CSTE) released its earnings results on Wednesday. The construction company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.11, FiscalAI reports. The firm had revenue of $96.27 million for the quarter, compared to analyst estimates of $105.20 million. Caesarstone had a negative return on equity of 29.40% and a negative net margin of 48.05%.

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

• Profitability improved substantially, with adjusted EBITDA near break-even at a $0.1 million loss, versus a $7.9 million loss a year earlier. Gross margin rose 810 basis points to 25.4%, reflecting lower production costs and restructuring savings.
• Revenue fell 7.2% year over year on a constant-currency basis to $96.3 million, as soft demand and competitive pressure—especially in the U.S.—weighed on results. U.S. revenue declined 16.9%, partly offset by growth in Australia and the big-box channel.
• A California jury verdict assigned Caesarstone 69% of the fault in a silica-related case, potentially representing about $46.8 million before any modification. The company disputes the verdict and says it creates significant uncertainty about its financial condition.
• New U.S. quartz tariffs are expected to add an estimated $10 million to $15 million in annual costs, on top of existing import tariffs. September price increases and potential sourcing changes are intended to mitigate the impact.

Caesarstone Stock Performance

Shares of CSTE opened at $1.30 on Friday. The company has a 50-day simple moving average of $2.50 and a 200-day simple moving average of $2.05. Caesarstone has a 52 week low of $0.56 and a 52 week high of $3.84. The firm has a market capitalization of $45.14 million, a P/E ratio of -0.25 and a beta of 0.48.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Wall Street Zen upgraded Caesarstone from a “strong sell” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Caesarstone in a research note on Tuesday, November 3rd. One investment analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, the company presently has a consensus rating of “Sell”.

Caesarstone Company Profile

Caesarstone Ltd. is an Israeli company that manufactures and markets surfaces for residential and commercial spaces. Its products include engineered quartz, porcelain and natural-stone surfaces, commonly used for kitchen countertops, bathroom vanities, wall cladding and other interior applications. Founded in 1987 at Kibbutz Sdot Yam, Israel, the company helped develop the market for engineered quartz surfaces. Caesarstone serves customers internationally through a network of distributors, retailers and other sales channels, with markets across regions including North America, Europe, Asia and Australia.