Foodservice packaging supplier Karat Packaging (NASDAQ:KRT) will be announcing earnings results this Thursday afternoon. Here’s what investors should know.
Karat Packaging beat analysts’ revenue expectations last quarter, reporting revenues of $116.9 million, up 12.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA and EPS 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 9.3% year on year, in line with the 10.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and Custom Truck One Source reported revenues up 10.2%, topping estimates by 8.8%. Richardson Electronics traded up 21.2% following the results while Custom Truck One Source was also up 3.6%.
Read our full analysis of Richardson Electronics’s results here and Custom Truck One Source’s results here.
Investors in the specialty equipment distributors segment have had steady hands going into earnings, with share prices flat over the last month. Karat Packaging is up 18.2% during the same time and is heading into earnings with an average analyst price target of $36.50 (compared to the current share price of $41.13).
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