Caesarstone (NASDAQ: CSTE) reported Q1 EPS of $0.08, in-line with the analyst estimate of $0.08. Revenue for the quarter came in at $128.2 million versus the consensus estimate of $132.66 million.

• Revenue of $128.2 million
• Net loss of $0.4 million, or $0.01 per share
• Adjusted net income of $2.7 million, or $0.08 per share
• Adjusted EBITDA of $11.6 million
• Announces a Global Growth Acceleration Plan focused on growth with excellence and efficiency, including an immediate 7% global workforce reduction and planned expansion of the U.S. sales force
• Reiterates full year 2019 outlook

Yuval Dagim, Chief Executive Officer, commented, “We are excited to announce today our Global Growth Acceleration Plan to further distinguish the Caesarstone brand. We believe that this plan will yield better allocation of our resources while more efficiently positioning our business for sustained profitable growth. Through this plan, we are implementing our new matrix organization structure, shifting our resources to invest in the right talent and technology to more efficiently manage our go-to-market, supply chain, and production processes. In North America, we are making good progress on the integration of our U.S. and Canadian operations and look forward to capture the great opportunity in this region. We believe our collective actions are starting to position our Company to better navigate an evolving global landscape to improve results and generate greater value in the coming years.”

Ophir Yakovian, Chief Financial Officer, added, “We achieved improvement in certain financial and operational measurements, primarily reflecting our efforts to control costs and improve our operational efficiency as we operate in more challenging global market conditions. While our core business in the U.S. grew for a third consecutive quarter, overall sales declined year-over-year on a constant currency basis mainly due to softer markets in our major territories outside the U.S. With the Global Growth Acceleration Plan announced today, we believe we are taking the right steps to support the accomplishment of our objectives in 2019 and we continue to expect the significant improvement of our results to be weighted towards the second half of the year.”

Mr. Dagim, commented, “The Global Growth Acceleration Plan will better position the Company and strengthen its core business, operational and technological activities.”

GUIDANCE:

Caesarstone sees FY2019 revenue of $580-600 million, versus the consensus of $584.03 million.

• The Company reiterates its 2019 outlook and expects adjusted EBITDA to be in the range of $72 million to $80 million.
• The Company expects to show improvement in key metrics beginning in the second half of 2019.

For earnings history and earnings-related data on Caesarstone (CSTE) click here.