Caesarstone (NASDAQ:CSTE – Get Free Report) posted its quarterly earnings data on Wednesday. The construction company reported ($0.05) EPS 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 Stock Down 2.9%
CSTE traded down $0.04 during midday trading on Wednesday, hitting $1.32. The company had a trading volume of 35,913 shares, compared to its average volume of 392,151. The stock’s 50 day moving average price is $2.57 and its 200 day moving average price is $2.06. Caesarstone has a 52 week low of $0.56 and a 52 week high of $3.84. The company has a market capitalization of $45.66 million, a price-to-earnings ratio of -0.32 and a beta of 0.48.
Analysts Set New Price Targets
Several research analysts have issued reports on the stock. Wall Street Zen upgraded shares of Caesarstone from a “strong sell” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings reaffirmed 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. According to MarketBeat.com, the stock currently has a consensus rating of “Sell”.
Get Our Latest Report on Caesarstone
About Caesarstone
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.
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