CaesarStone Surges on Dividend, Higher Sales Forecast in
Caesarstone Sdot Yam Ltd. (CSTE), the Israeli maker of quartz countertops, jumped the most in two months after the company raised its revenue forecast for this year and said it would pay a one-time dividend.
Shares of Caesarstone rallied 6.6 percent to $45.19, the most since Oct. 25. The stock has gained 183 percent this year and 311 percent since its March 2012 initial public offering. The company said it will pay a one-time dividend of 58 cents, its first payment on record.
The company reported revenue for the third quarter of $94.3 million, beating the $87.77 million mean estimate of three analysts surveyed by Bloomberg. The Sdot Yam, Israel-based company expects revenue for 2013 to increase as much as 17 percent from a year ago to $348 million. Home prices climbed in 88 percent of U.S. cities in the third quarter, the National Association of Realtors said in a report today.
“Caesarstone hit a good nerve here in terms of their exposure to the U.S. housing market,” Josef Schuster, the founder of IPOX Schuster LLC in Chicago, an IPO research firm, said by phone on Nov. 6. The company benefits “from the surge in U.S. consumer spending related to the housing market and that’s driving the momentum right now.”
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