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Karat Packaging (KRT) Q1 Earnings: What To Expect

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

KRT Cover Image

Foodservice packaging supplier Karat Packaging (NASDAQ: KRT) will be reporting results tomorrow after market hours. Here’s what investors should know.

Karat Packaging missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $101.6 million, up 6.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.

Is Karat Packaging a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Karat Packaging’s revenue to grow 7% year on year to $102.3 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Karat Packaging Total Revenue

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.

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. SiteOne delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 0.6%, and United Rentals reported revenues up 6.7%, topping estimates by 2.5%. SiteOne traded up 2.6% following the results while United Rentals was also up 10.1%.

Read our full analysis of SiteOne’s results here and United Rentals’s results here.

There has been positive sentiment among investors in the specialty equipment distributors segment, with share prices up 15.1% on average over the last month. Karat Packaging is up 11.4% during the same time and is heading into earnings with an average analyst price target of $31.50 (compared to the current share price of $26.48).

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