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

Caesarstone (NASDAQ:CSTE) announced its earnings results on Wednesday. The construction company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.16, FiscalAI reports. Caesarstone had a negative return on equity of 29.38% and a negative net margin of 37.37%.The company had revenue of $96.55 million during the quarter, compared to analysts’ expectations 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 Down 5.2%

NASDAQ CSTE traded down $0.12 during trading hours on Thursday, hitting $2.20. 253,066 shares of the company were exchanged, compared to its average volume of 100,063. The company has a 50 day moving average of $2.07 and a two-hundred day moving average of $1.75. Caesarstone has a 52-week low of $0.56 and a 52-week high of $2.62. The firm has a market cap of $76.05 million, a price-to-earnings ratio of -0.53 and a beta of 0.37.

Analyst Ratings Changes

Separately, Wall Street Zen raised 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 data from MarketBeat, Caesarstone has an average rating of “Sell”.

Hedge Funds Weigh In On Caesarstone

Institutional investors and hedge funds have recently made changes to their positions in the stock. Pitcairn Co. purchased a new stake in shares of Caesarstone during the second quarter worth approximately $31,000. Virtu Financial LLC purchased a new position in Caesarstone in the fourth quarter worth approximately $30,000. Qube Research & Technologies Ltd purchased a new position in Caesarstone in the second quarter worth approximately $56,000. Citadel Advisors LLC grew its holdings in Caesarstone by 163.7% during the 3rd quarter. Citadel Advisors LLC now owns 63,589 shares of the construction company’s stock worth $101,000 after acquiring an additional 39,474 shares in the last quarter. Finally, Jane Street Group LLC acquired a new position in Caesarstone during the 2nd quarter worth approximately $263,000. 33.70% of the stock is owned by institutional investors and hedge funds.

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.