Caesarstone Clocks Q4 Revenue Growth Of 25%, Guides FY22 Revenue Above Consensus

Caesarstone Ltd 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.

Earnings Calendar