Foodservice packaging supplier Karat Packaging (NASDAQ:KRT) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
Karat Packaging beat analysts’ revenue expectations last quarter, reporting revenues of $136.3 million, up 9.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 12.7% year on year, improving from the 10.4% 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 Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 10.1%, and United Rentals reported revenues up 15.7%, topping estimates by 4.4%. Richardson Electronics’s stock price was unchanged after the resultswhile United Rentals was up 3.9%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’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 down 4.5% during the same time and is heading into earnings with an average analyst price target of $46.50 (compared to the current share price of $52.20).
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