Caesarstone (NASDAQ:CSTE) Issues Earnings Results

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

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 Performance

Shares of NASDAQ CSTE traded down $0.12 during midday trading on Thursday, reaching $2.20. The stock had a trading volume of 253,066 shares, compared to its average volume of 100,063. Caesarstone has a 12-month low of $0.56 and a 12-month high of $2.62. The stock has a 50-day moving average of $2.07 and a 200-day moving average of $1.75. The company has a market capitalization of $76.05 million, a price-to-earnings ratio of -0.53 and a beta of 0.37.

Institutional Investors Weigh In On Caesarstone

A number of institutional investors and hedge funds have recently bought and sold shares of CSTE. Pitcairn Co. purchased a new stake in Caesarstone during the second quarter valued at $31,000. Virtu Financial LLC purchased a new stake in shares of Caesarstone during the 4th quarter valued at about $30,000. Qube Research & Technologies Ltd purchased a new stake in shares of Caesarstone during the 2nd quarter valued at about $56,000. Citadel Advisors LLC lifted its holdings in shares of Caesarstone by 163.7% in the 3rd quarter. Citadel Advisors LLC now owns 63,589 shares of the construction company’s stock valued at $101,000 after acquiring an additional 39,474 shares during the last quarter. Finally, Jane Street Group LLC bought a new position in shares of Caesarstone in the 2nd quarter valued at about $263,000. 33.70% of the stock is owned by institutional investors.

Analyst Ratings Changes

Separately, Wall Street Zen raised Caesarstone from a “strong sell” rating to a “sell” rating in a report on Saturday, June 27th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Caesarstone Company Profile

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.