Foodservice packaging supplier Karat Packaging (NASDAQ: KRT) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
Karat Packaging met analysts’ revenue expectations last quarter, reporting revenues of $124 million, up 10.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.
Is Karat Packaging a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Karat Packaging’s revenue to grow 10% year on year to $124.1 million, improving from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Karat Packaging has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 1% on average.
Looking at Karat Packaging’s peers in the specialty equipment distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6%, and SiteOne reported revenues up 4.1%, in line with consensus estimates. Richardson Electronics traded up 11.4% following the results while SiteOne was also up 5.1%.
Read our full analysis of Richardson Electronics’s results here and SiteOne’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the specialty equipment distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Karat Packaging is up 2.2% during the same time and is heading into earnings with an average analyst price target of $33 (compared to the current share price of $23.86).
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
