Why CaesarStone's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of CaesarStone jumped as much as 13% today after releasing earnings.

So what: Fourth-quarter revenue was up 12.6% to $76.2 million, and net income nearly doubled to $10.8 million, or $0.31 per share. Analysts expected revenue of only $73.2 million and earnings of $0.30 per share.

Now what: Even better than last quarter's earnings were the company's guidance of revenue of $330 million to $340 million next year. Analysts expected only $327 million in revenue next year, so the company is expected to easily outpace expectations. Shares now trade at 14 times next year's earnings estimates, and at that price I think there's still upside in shares going forward.

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The article Why CaesarStone's Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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