Foodservice packaging supplier Karat Packaging (NASDAQ:KRT) will be reporting results tomorrow after market close. Here's what investors should know.
Karat Packaging missed analysts' revenue expectations by 4.2% last quarter, reporting revenues of $95.61 million, flat year on year. It was a weak quarter for the company, with a miss of analysts' earnings 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 4.7% year on year to $113.9 million, a reversal from the 5.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
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 16.8% year on year, missing analysts' expectations by 4.9%, and Richardson Electronics reported a revenue decline of 19.5%, falling short of estimates by 1.3%. Richardson Electronics traded up 2.8% following the results.
Read our full analysis of Hudson Technologies's results here and Richardson Electronics's results here.
Investors in the specialty equipment distributors segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Karat Packaging is up 3% during the same time and is heading into earnings with an average analyst price target of $33.7 (compared to the current share price of $27.82).
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