What: Shares of quartz supplier Caesarstone Sdot-Yam Ltd jumped as much as 13% after the company reported third-quarter earnings.
So what: Revenue rose 11% to $136.8 million and without currency fluctuations growth would have been 23.8% in the quarter. Despite the revenue growth, net income fell 25% to $19.8 million, or $0.56 per share. On an adjusted basis, earnings were $0.69 per share, which came in a penny ahead of expectations.
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Now what: The U.S. business was particularly strong, with 22% growth in the quarter, and that looks to be a long-term strength as international markets struggle. Management also said that costs associated with early production in the U.S. and negative impacts of currency fluctuations hurt margins, leading to the decline in earnings during the quarter. Given the strong momentum and a forward P/E ratio of just 1, I think shares still have room to run higher.
The article Why Caesarstone Sdot-Yam Ltd's Shares Jumped 13% Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Caesarstone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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