What: Shares of quartz supplier Caesarstone Sdot-Yam Ltd (CSTE 0.49%) 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.
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.