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LONDON -Caesarstone Ltd. (NASDAQ:CSTE) reported fourth quarter revenue that missed analyst expectations on Wednesday.
Caesarstone shares were up 0.27% in premarket trading following the earnings release.
The engineered surfaces manufacturer posted revenue of $97.9 million for the quarter, down 23.9% year-over-year and well below the consensus estimate of $121 million. Adjusted loss per share came in at $0.35, worse than analysts’ expectations for a $0.15 per share loss.
Caesarstone attributed the revenue decline to "global economic headwinds across the Company’s main regions resulting in lower demand accompanied by greater competitive pressures." On a constant currency basis, fourth quarter revenue fell 23.8% compared to the prior year period.
Despite the revenue miss, Caesarstone’s gross margin improved to 19.4% in Q4 2024 from 18.1% in Q4 2023. The company said this was mainly due to "benefits of an improved production footprint, partially offset by unfavorable product mix and lower production."
For the full year 2024, Caesarstone reported revenue of $443.2 million, down 21.6% from $565.2 million in 2023. However, gross margin for the year improved significantly to 21.8% compared to 16.3% in the prior year.
"Caesarstone delivered resilient adjusted EBITDA performance for the full year, even as our revenue reflects the persistent global market headwinds affecting our industry," said CEO Yos Shiran.
Looking ahead, CFO Nahum Trost said the company expects "modest improvement in full year 2025 adjusted EBITDA compared to full year 2024" as it realizes benefits from cost optimization initiatives.
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