Caesarstone (NASDAQ:CSTE) Announces Earnings Results

Caesarstone (NASDAQ:CSTE) posted its earnings results on Wednesday. The construction company reported ($0.32) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.03, Zacks reports. The firm had revenue of $88.71 million during the quarter, compared to analyst estimates of $97.80 million. Caesarstone had a negative net margin of 34.60% and a negative return on equity of 24.33%.

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

• Gross margin improved by 100 basis points year over year to 22.3%, despite lower revenue, as Caesarstone’s shift to a third-party manufacturing model and leaner production footprint began to flow through the P&L.
• Revenue declined 14.9% on a constant-currency basis to $88.7 million, with weakness in North America, Canada, and Israel outweighing growth in Australia.
• Australia remained a bright spot, with revenue up 11.2% constant currency for the third straight quarter of growth, supported by increasing adoption of the company’s ICON products.
• Restructuring savings are tracking ahead, with Caesarstone expecting more than $100 million of annual cash savings by 2027 and additional 2026 restructuring cash costs of about $3 million to $5 million.
• Near-term headwinds remain significant, including roughly 15% average U.S. import tariffs, ITC remedy uncertainty, conflict-related pressure in Israel, and ongoing silica litigation with 711 claims outstanding.

Caesarstone Trading Up 6.0%

Caesarstone stock traded up $0.09 during midday trading on Thursday, reaching $1.58. 144,532 shares of the stock traded hands, compared to its average volume of 772,601. Caesarstone has a fifty-two week low of $0.56 and a fifty-two week high of $2.58. The firm has a market cap of $54.62 million, a price-to-earnings ratio of -0.40 and a beta of 0.23. The firm has a fifty day moving average price of $1.21 and a two-hundred day moving average price of $1.52.

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, May 9th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has a consensus rating of “Sell”.

Institutional Trading of Caesarstone

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Pitcairn Co. bought a new stake in shares of Caesarstone during the 2nd quarter worth about $31,000. Virtu Financial LLC acquired a new stake in shares of Caesarstone during the fourth quarter valued at approximately $30,000. Qube Research & Technologies Ltd acquired a new stake in shares of Caesarstone during the second quarter valued at approximately $56,000. Citadel Advisors LLC raised its holdings in shares of Caesarstone by 163.7% during the third 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 period. Finally, Jane Street Group LLC purchased a new position in shares of Caesarstone during the 2nd quarter valued at $263,000. 33.70% of the stock is currently owned by institutional investors.

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.