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Karat Packaging (KRT) Q2 Earnings: What To Expect

KRT Cover Image

Foodservice packaging supplier Karat Packaging (NASDAQ: KRT) will be reporting results this Thursday afternoon. Here’s what you need to know.

Karat Packaging beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $103.6 million, up 8.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS 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 9.7% year on year to $123.5 million, improving from the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.

Karat Packaging Total Revenue

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 six 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. Hudson Technologies’s revenues decreased 3.2% year on year, beating analysts’ expectations by 1.7%, and Custom Truck One Source reported revenues up 20.9%, topping estimates by 9.6%. Hudson Technologies traded up 12.9% following the results while Custom Truck One Source was also up 9%.

Read our full analysis of Hudson Technologies’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 2.1% on average over the last month. Karat Packaging is down 7.7% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $26.64).

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