- Caesarstone Ltd (NASDAQ:CSTE) reported fourth-quarter revenue growth of 25% year-over-year to $171.1 million, +24.2% on a constant currency basis, beating the consensus of $158.23 million.
- Sales growth was driven by improved demand across the majority of the company’s global footprint in addition to the contribution of the Omicron acquisition.
- Adjusted EPS was $0.01 down from $0.05 a year ago, missing the consensus of $0.06.
- The gross margin was 23.2% compared to 28.1% in the prior-year quarter, and the Adjusted gross margin was 23.3%, down 530 bps.
- Reduced gross margin reflects higher raw material prices, mainly polyester, and shipping price increases, partially offset by favorable product mix and selling price increases.
- The operating income was $3.34 million (-58.7% Y/Y), and the margin contracted by 396 bps to 1.9%.
- Adjusted EBITDA reduced to $11.54 million (-38.5% Y/Y), and margin contracted by 695 bps to 6.7%.
- Caesarstone generated cash from operating activities in FY21 of $20.97 million, compared to $47.62 million a year ago.
- It held cash and equivalents of $94.2 million and total debt to financial institutions of $12.5 million.
- FY22 Outlook: Caesarstone expects revenue of $710 million - $725 million, implying ~11% Y/Y growth at the midpoint, above the consensus of $697.56 million.
- Price Action: CSTE shares closed higher by 1.30% at $12.50 on Tuesday.
