CSTE Earnings Prediction
The chart below shows how CSTE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CSTE sees a +9.22% change in stock price 10 days leading up to the earnings, and a -4.15% change 10 days following the report. On the earnings day itself, the stock moves by -3.62%. This data can give you a slight idea of what to expect for the next quarter's release.
CSTE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
107.63M
-24.41%
-9.88%
Gross Margin
19.85%
3.98%
-13.28%
Operating Margin
-8.04%
50.56%
40.31%
Net Margin
-3.93%
614.55%
-49.94%
EPS
-0.12
-300.00%
-55.56%
No Data Available
CSTE Earnings Analysis
Caesarstone Ltd. Corporation (CSTE.O) Earnings Conference Call
Positive
Cash Flow Generation: 1. Strong Cash Flow Generation: Caesarstone generated healthy operating cash flow of $16 million in Q3 2024, driven primarily by the sale of land and continued working capital optimization.
Gross Margin Improvement: 2. Improved Gross Margin: The gross margin in Q3 2024 improved to 19.9%, up from 19.1% in the prior year quarter, reflecting the benefits of an optimized production footprint.
Cash Reserves Improvement: 3. Significant Cash Reserves: The company reported cash and short-term deposits of $114.1 million, with a net cash position improving to $108.9 million from $83.5 million at the end of 2023.
Land Sale Success: 4. Successful Land Sale: Caesarstone completed the sale of 69 acres of undeveloped land for $10 million, contributing positively to their cash flow and operational flexibility.
Cost Savings Projections: 5. Cost Savings Initiatives: The company expects to realize approximately $35 million in restructuring-related cost savings compared to 2023 levels, with $20 million in savings anticipated this year and an additional $15 million annually thereafter.
Negative
Revenue Decline Analysis: 1. Significant Revenue Decline: Global revenue for Q3 2024 was $107.6 million, down 24.8% year-over-year on a constant currency basis, primarily due to lower volumes in the residential renovation market.
U.S. Sales Decline: 2. U.S. Sales Drop: Sales in the U.S. decreased by 20.5% to $52.4 million, driven by softer residential end markets and a less favorable product mix.
Sales Decline in Australia: 3. Severe Decline in Australia: Sales in Australia fell approximately 37.7% on a constant currency basis, reflecting slower market conditions and challenges in transitioning to alternative materials.
Adjusted EBITDA Decline: 4. Adjusted EBITDA Loss: The company reported an adjusted EBITDA loss of $4.1 million in Q3 2024, a significant decline from a gain of $1.9 million in the prior year quarter.
Rising Operating Expenses: 5. Increased Operating Expenses: Operating expenses were 23.6% of revenue in Q3 2024, up from 20.5% in the prior year quarter, primarily due to lower revenues despite a decrease in absolute dollar terms.
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CSTE Earning Call Sentiment
Caesarstone Ltd. (CSTE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CSTE.O
0%Positive
The earnings call highlights declining sales across multiple regions, ongoing cost pressures, and legal risks, which outweigh the slight improvements in gross margin and cash position. The Q&A reveals negative market trends and unclear responses from management, adding uncertainty. Despite cost savings and restructuring efforts, the weak guidance and economic downturn are likely to lead to a negative market reaction.
