Caesarstone (NASDAQ:CSTE) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Caesarstone (NASDAQ:CSTE) issued its earnings results on Wednesday. The construction company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.11, FiscalAI reports. Caesarstone had a negative return on equity of 32.36% and a negative net margin of 37.37%. The company had revenue of $96.27 million for the quarter, compared to analyst estimates of $105.20 million.

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 Trading Down 2.9%

Shares of CSTE traded down $0.04 on Wednesday, reaching $1.32. The company’s stock had a trading volume of 35,913 shares, compared to its average volume of 392,151. Caesarstone has a twelve month low of $0.56 and a twelve month high of $3.84. The stock has a market capitalization of $45.66 million, a PE ratio of -0.32 and a beta of 0.48. The firm has a fifty day moving average of $2.57 and a 200-day moving average of $2.06.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CSTE. 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 analyst has rated the stock with a Sell rating. According to data from MarketBeat, the stock has an average rating of “Sell”.

Caesarstone Company Profile

Caesarstone Ltd. (NASDAQ: CSTE) is a manufacturer and distributor of engineered surfaces used primarily in residential and commercial construction and remodeling. The company is best known for quartz surfaces designed for kitchen countertops, bathroom vanities and other interior applications. Its product portfolio also includes porcelain and natural stone surfaces, along with related designs for wall cladding, flooring, tables and outdoor areas. Caesarstone markets its products through distributors, fabricators, retailers, kitchen and bath specialists, and other building-materials channels.