Foodservice packaging supplier Karat Packaging (NASDAQ: KRT) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Karat Packaging beat analysts’ revenue expectations last quarter, reporting revenues of $115.6 million, up 13.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Karat Packaging a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Karat Packaging’s revenue to grow 9% year on year, in line with the 8.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Karat Packaging has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Karat Packaging’s peers in the specialty equipment distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.4%, and Custom Truck One Source reported revenues up 9.3%, topping estimates by 1.1%. Richardson Electronics traded up 22.7% following the results while Custom Truck One Source was also up 2.6%.
Read our full analysis of Richardson Electronics’s results here and Custom Truck One Source’s results here.
There has been positive sentiment among investors in the specialty equipment distributors segment, with share prices up 9.9% on average over the last month. Karat Packaging is up 4.5% during the same time and is heading into earnings with an average analyst price target of $29.50 (compared to the current share price of $29.38).
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