Caesarstone beats analysts with strong profit and revenue growth

Caesarstone reiterated its full-year revenue guidance of $330-340 million and adjusted EBITDA guidance of $76-80 million.

Engineered quartz surfaces maker Caesarstone Sdot Yam Ltd. (Nasdaq: CSTE) posted double-digit revenue and profit growth for the first quarter of 2013, beating the analysts' consensus, and reiterated its full-year guidance.

Revenue rose 13.5% to $76.4 million for the first quarter from $67.3 million for the corresponding quarter of 2012. The company attributed the growth to 26% increase in US sales and a 22% increase in Canadian sales, which topped the company's sales growth in all regions.

GAAP-based net profit attributable to controlling shareholders more than doubled to $10.5 million ($0.30 per share) for the first quarter from $4.8 million for the corresponding quarter, and non-GAAP net profit rose 52% to $11.3 million ($0.32 per share) from $7.4 million.

Caesarstone beat the analysts' consensus of $0.27 earnings per share on $74 million revenue.

Caesarstone reiterated its full-year revenue guidance of $330-340 million and adjusted EBITDA guidance of $76-80 million, adding that, given the strong first quarter performance, the results will be in the upper part of this range. The guidance is within the analysts' consensus.

Caesarstone CEO Yosef Shiran said, “Our growth in North America continues to be strong and we are excited to build our presence into the fast-growing US and Canadian markets as they embrace quartz as a superior material. We are also pleased to see growth in sales and margins following a strong global response to our innovative Super-Naturals product line."

Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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