Karat Packaging Inc.

Alan Yu, the Chief Executive Officer of $KRT, sold 750,000 shares of the company on 06-12-2025 for an estimated $20,250,000. We received data on the trade from a recent SEC filing. This was a sale of approximately 10.8% of their shares of this class of stock. Following this trade, they now own 6,203,805 shares of this class of $KRT stock.
$KRT Insider Trading Activity
$KRT insiders have traded $KRT stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $KRT stock by insiders over the last 6 months:
ALAN YU (Chief Executive Officer) sold 750,000 shares for an estimated $20,250,000
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$KRT Hedge Fund Activity
We have seen 43 institutional investors add shares of $KRT stock to their portfolio, and 47 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
KORNITZER CAPITAL MANAGEMENT INC /KS removed 126,657 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $3,832,640
AMERIPRISE FINANCIAL INC removed 88,586 shares (-25.6%) from their portfolio in Q1 2025, for an estimated $2,354,615
WELLINGTON MANAGEMENT GROUP LLP removed 73,427 shares (-21.2%) from their portfolio in Q1 2025, for an estimated $1,951,689
WASATCH ADVISORS LP added 45,692 shares (+16.6%) to their portfolio in Q1 2025, for an estimated $1,214,493
LPL FINANCIAL LLC removed 32,809 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $872,063
AMERICAN CENTURY COMPANIES INC added 24,791 shares (+13.2%) to their portfolio in Q1 2025, for an estimated $658,944
ELLSWORTH ADVISORS, LLC removed 21,783 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $659,153
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Insider Sale: Chief Executive Officer of $KRT Sells 750,000 Shares

In trading on Friday, shares of Karat Packaging Inc (Symbol: KRT) crossed above their 200 day moving average of $28.08, changing hands as high as $30.11 per share. Karat Packaging Inc shares are currently trading up about 10.1% on the day. The chart below shows the one year performance of KRT shares, versus its 200 day moving average:
Looking at the chart above, KRT's low point in its 52 week range is $23 per share, with $33.89 as the 52 week high point — that compares with a last trade of $30.24.
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
Institutional Holders of PSX
HOLI YTD Return
Top Ten Hedge Funds Holding LFEQ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Karat Packaging (KRT) Shares Cross Above 200 DMA

Shares of Karat Packaging, Inc. KRT have lost 5% since it reported lower-than-expected fourth-quarter 2024 earnings per share (EPS) on March 13, 2025. The quarterly adjusted EPS of 29 cents missed the Zacks Consensus Estimate of 37 cents by a margin of 21.6%. Earnings, however, improved 21% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Including one-time items, EPS was 28 cents compared with the year-ago quarter’s 19 cents.
Karat Packaging Inc. Price, Consensus and EPS Surprise
Karat Packaging Inc. price-consensus-eps-surprise-chart | Karat Packaging Inc. Quote
Karat Packaging Sees Volume Growth in Q4
Total revenues were $101.6 million in the quarter, which missed the Zacks Consensus Estimate of $102.3 million. The year-ago quarter included a favorable impact from the adjustment of $4.8 million of online sales platform fees for the first nine months in 2023.
Revenues were up 6% year over year aided by volume growth of 14% and a change in product mix, partially offset by a decrease of 4% in online sales platform fees reflecting the favorable impact in the prior-year quarter, as well as a 6% unfavorable year-over-year pricing comparison.
KRT’s Margins Expand Y/Y in Q4
The cost of sales increased 0.5% year over year to $61.8 million. The figure included an additional import duty charge of $0.6 million on paper shopping bags. Product costs increased attributed to volume growth, partially offset by a favorable impact from reduced vendor pricing, a stronger United States dollar against the New Taiwan Dollar and an increase in imports as a percentage of the total product mix. Ocean freight costs were higher, due to an increase in import volume along with higher freight container rates.
Gross profit rose 17% year over year to $39.8 million. The gross margin was 39.2%, a 350-basis point expansion from the year-ago quarter. Gross margin benefited from lower product costs as a percentage of net sales in the quarter reflecting more favorable vendor pricing, foreign currency impact and product mix. However, higher freight and duty costs somewhat offset these gains.
Operating expenses were $32.5 million, a 10% increase compared with $29.5 million in the year-ago quarter. Adjusted EBITDA rose 32% year over year to $11.3 million. The adjusted EBITDA margin was 11.1% compared with 9% in the fourth quarter of 2023.
Karat Packaging’s Cash Position at 2024-End
Karat Packaging reported cash and cash equivalents of $21.6 million as of Dec. 31, 2024, up from $23.1 million as of Dec. 31, 2023. The company generated $48 million of cash flow from operations in 2024 compared with $53 million in the prior year.
KRT’s Performance in 2024
Karat Packaging’s 2024 adjusted EPS of $1.64 came in 10% lower than the prior year’s figure of $1.83. The figure missed the Zacks Consensus Estimate of $1.66.
Including one-time items, EPS was $1.49 compared with $1.63 in 2023.
KRT’s revenues increased 4.2% year over year to $423 million, in line with the Zacks Consensus Estimate. The increase primarily reflected higher volumes, a change in product mix and an increase of $4.6 million in online sales platform fees due to higher sales within the e-commerce channel in the current year, as well as higher logistics and shipping revenues. However, this was offset by unfavorable pricing.
Karat Packaging’s Guidance for Q1 & 2025
KRT anticipates year-over-year sales growth in the range of 6-8% in the first quarter of 2025. The gross margin is projected between 37% and 39% in the quarter. Adjusted EBITDA margin is likely to be between 9% to 11%.
For 2025, sales growth is forecast to be in the band of 9-11% from the previous year. The targeted gross margin for the year is between 36% and 48%. Adjusted EBITDA margin is expected in the low to mid-double-digits.
KRT Stock’s Price Performance
Shares of the company have gained 3.3% in the past year compared with the industry’s 2.6% growth.
Image Source: Zacks Investment Research
KRT’s Zacks Rank
Karat Packaging currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Packaging Stocks
AptarGroup, Inc. ATR reported fourth-quarter 2024 adjusted EPS of $1.52, which beat the Zacks Consensus Estimate of $1.26. The bottom line increased 27% year over year from $1.20 per share (including comparable exchange rates).
ATR’s total revenues increased 1.1% year over year to $848 million. However, the reported figure missed the Zacks Consensus Estimate of $858 million.
Packaging Corporation of America PKG posted adjusted EPS of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line grew 16% year over year. The upside was driven by higher prices and mix, improved volume in both segments and lower freight and logistics expenses. However, these gains were somewhat offset by an increase in operating expenses, scheduled maintenance outage expenses, depreciation expenses and other expenses.
Revenues in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the Zacks Consensus Estimate of $2.13 billion.
Amcor Plc AMCR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings per share of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents per share in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts of price/mix. Amcor’s revenues dipped 0.3% year over year to $3.24 billion, which missed the Zacks Consensus Estimate of $3.44 billion.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
Karat Packaging Inc. (KRT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Karat Packaging Stock Dips 5% Since Reporting Q4 Earnings Miss

The following companies are expected to report earnings after hours on 03/13/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Wheaton Precious Metals Corp. (WPM)is reporting for the quarter ending December 31, 2024. The mining company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.44. This value represents a 22.22% increase compared to the same quarter last year. In the past year WPM has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for WPM is 48.75 vs. an industry ratio of -12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
DocuSign, Inc. (DOCU)is reporting for the quarter ending January 31, 2025. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.24. This value represents a 60.00% increase compared to the same quarter last year. In the past year DOCU has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 52.38%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for DOCU is 68.49 vs. an industry ratio of -69.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Ulta Beauty, Inc. (ULTA)is reporting for the quarter ending January 31, 2025. The retail company's consensus earnings per share forecast from the 15 analysts that follow the stock is $7.10. This value represents a 12.13% decrease compared to the same quarter last year. ULTA missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -2.75%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ULTA is 13.74 vs. an industry ratio of 9.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Semtech Corporation (SMTC)is reporting for the quarter ending January 31, 2025. The semiconductor company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.12. This value represents a 160.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for SMTC is -1692.50 vs. an industry ratio of -164.90.
EverCommerce Inc. (EVCM)is reporting for the quarter ending December 31, 2024. The internet software company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.02. This value represents a 83.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for EVCM is -54.00 vs. an industry ratio of -69.00, implying that they will have a higher earnings growth than their competitors in the same industry.
PagerDuty, Inc. (PD)is reporting for the quarter ending January 31, 2025. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.12. This value represents a 29.41% increase compared to the same quarter last year. PD missed the consensus earnings per share in the 1st calendar quarter of 2024 by -54.55%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for PD is -60.19 vs. an industry ratio of -69.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Karat Packaging Inc. (KRT)is reporting for the quarter ending December 31, 2024. The construction company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.37. This value represents a 54.17% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for KRT is 17.79 vs. an industry ratio of 12.60, implying that they will have a higher earnings growth than their competitors in the same industry.
VAALCO Energy, Inc. (EGY)is reporting for the quarter ending December 31, 2024. The international company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.05. This value represents a 86.49% decrease compared to the same quarter last year. EGY missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -33.33%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for EGY is 9.66 vs. an industry ratio of 14.40.
Xponential Fitness, Inc. (XPOF)is reporting for the quarter ending December 31, 2024. The leisure (recreational) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.44. This value represents a 450.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for XPOF is 17.58 vs. an industry ratio of 17.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Allogene Therapeutics, Inc. (ALLO)is reporting for the quarter ending December 31, 2024. The biomedical (gene) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-0.34. This value represents a 20.93% increase compared to the same quarter last year. In the past year ALLO has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for ALLO is -1.60 vs. an industry ratio of -4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
aTyr Pharma, Inc. (ATYR)is reporting for the quarter ending December 31, 2024. The biomedical (gene) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.23. This value represents a 8.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for ATYR is -3.90 vs. an industry ratio of -4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
REGENXBIO Inc. (RGNX)is reporting for the quarter ending December 31, 2024. The biomedical (gene) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-1.27. This value represents a 11.19% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for RGNX is -1.38 vs. an industry ratio of -4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for March 13, 2025 : WPM, DOCU, ULTA, SMTC, EVCM, PD, KRT, EGY, XPOF, ALLO, ATYR, RGNX

In recent trading, shares of Karat Packaging Inc (Symbol: KRT) have crossed above the average analyst 12-month target price of $33.00, changing hands for $33.46/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for Karat Packaging Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $28.00. And then on the other side of the spectrum one analyst has a target as high as $36.00. The standard deviation is $4.358.
But the whole reason to look at the average KRT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with KRT crossing above that average target price of $33.00/share, investors in KRT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $33.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Karat Packaging Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on KRT — FREE.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Energy Stocks You Can Buy Cheaper Than Insiders Did
NVDA shares outstanding history
WLFC market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

KRT Crosses Above Average Analyst Target

The following are today's upgrades for Validea's Growth/Value Investor model based on the published strategy of James P. O'Shaughnessy. This two strategy approach offers a large-cap value model and a growth approach that looks for persistent earnings growth and strong relative strength.
FMC CORP (FMC) is a mid-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 50% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FMC Corporation is an agricultural sciences company. It is engaged in providing solutions to growers with a product in crop protection, and crop enhancement. It develops, markets, and sells all three classes of crop protection chemicals (insecticides, herbicides, and fungicides) and biologicals, crop nutrition, and seed treatment products, which is grouped as plant health. Its insecticides are used to control a range of pests, while its herbicide portfolio primarily targets a variety of difficult-to-control weeds. Its product portfolio features two diamide-class molecules, namely Rynaxypyr (chlorantraniliprole) and Cyazypyr (cyantraniliprole) actives. Cyazypyr active contains brands, under the trademarks Verimark, Benevia, and Exire. Fungicides are used for the protection of crops, including cereals, fruits, and vegetables from fungal disease. Herbicides are used for the protection of crops, including cotton, sugarcane, rice, corn, and soybeans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP:
PASS
EARNINGS PER SHARE PERSISTENCE:
PASS
PRICE/SALES RATIO:
PASS
RELATIVE STRENGTH:
PASS
Detailed Analysis of FMC CORP
FMC Guru Analysis
FMC Fundamental Analysis
CERUS CORP (CERS) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 50% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cerus Corporation is a biomedical products company. The Company is focused on developing and commercializing the INTERCEPT Blood System to enhance blood safety. The INTERCEPT Blood System, which is based on its proprietary technology for controlling biological replication, is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. Its INTERCEPT Blood System is intended for use with blood components and certain of their derivatives: platelets, plasma, red blood cells and to produce INTERCEPT Fibrinogen Complex (IFC), and pathogen reduced plasma, cryoprecipitate reduced. The INTERCEPT Blood System for Cryoprecipitation uses its plasma system to produce IFC for the treatment and control of bleeding, including massive hemorrhage, associated with fibrinogen deficiency. In addition, the INTERCEPT Blood System for Cryoprecipitation is used to produce pathogen reduced plasma, cryoprecipitate reduced.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP:
PASS
EARNINGS PER SHARE PERSISTENCE:
PASS
PRICE/SALES RATIO:
PASS
RELATIVE STRENGTH:
PASS
Detailed Analysis of CERUS CORP
CERS Guru Analysis
CERS Fundamental Analysis
KARAT PACKAGING INC (KRT) is a small-cap growth stock in the Fabricated Plastic & Rubber industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 50% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Karat Packaging Inc. is a specialty distributor and manufacturer of a range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings across the United States. The Company classifies its customers into four categories. Distributors include national and regional distributors across the United States that purchase its products and provide a channel to offer its products to restaurants, offices, schools, government entities and other end users. National and regional chains include typically fast casual and fast-food restaurants with locations across multiple states. Retail includes primarily regional bubble tea shops, boutique coffee shops and frozen yogurt shops that often purchase its specialty beverage ingredients and related items. E-commerce/Online includes small businesses, such as small restaurants, bubble tea shops, coffee shops, juice bars, smoothie shops and some customers who purchase for personal use.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP:
PASS
EARNINGS PER SHARE PERSISTENCE:
PASS
PRICE/SALES RATIO:
PASS
RELATIVE STRENGTH:
PASS
Detailed Analysis of KARAT PACKAGING INC
KRT Guru Analysis
KRT Fundamental Analysis
James P. O'Shaughnessy Portfolio
About James P. O'Shaughnessy: Research guru and money manager James O'Shaughnessy forced many professional and amateur investors alike to rethink their investment beliefs when he published his 1996 bestseller, What Works on Wall Street. O'Shaughnessy back-tested 44 years ofstock market datafrom the comprehensive Standard & Poor's Compustat database to find out which quantitative strategies have worked over the years and which haven't. To the surprise of many, he concluded that price/earnings ratios aren't the best indicator of a stock's value, and that small-company stocks, contrary to popular wisdom, don't as a group have an edge on large-company stocks. Today O'Shaughnessy is the Chief Investment Officer of O'Shaughnessy Asset Management.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea James P. O'Shaughnessy Strategy Daily Upgrade Report - 12/19/2024

Packaging Corp. (PKG) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.48 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.85%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $2.12 per share when it actually produced earnings of $2.20, delivering a surprise of 3.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Packaging Corp., which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.18 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.89%. This compares to year-ago revenues of $1.94 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Packaging Corp. Shares have added about 34.5% since the beginning of the year versus the S&P 500's gain of 22.7%.
What's Next for Packaging Corp.
While Packaging Corp. Has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Packaging Corp. Favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.33 on $2.08 billion in revenues for the coming quarter and $8.73 on $8.23 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Karat Packing (KRT), another stock in the same industry, has yet to report results for the quarter ended September 2024.
This company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +10.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Karat Packing's revenues are expected to be $113.58 million, up 7.6% from the year-ago quarter.
Should You Invest in Packaging Corporation of America (PKG)?
Before you invest in Packaging Corporation of America (PKG), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
Karat Packaging Inc. (KRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Packaging Corp. (PKG) Surpasses Q3 Earnings and Revenue Estimates

Shares of Karat Packaging, Inc. KRT have lost 8.5% since the company reported lower-than-expected second-quarter 2024 revenues and earnings per share (EPS) on Aug 8, 2024. The quarterly adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents and declined 29% year over year. The downfall was due to unfavorable year-over-year pricing comparison, higher freight costs and an increase in operating expenses in the quarter.
Including one-time items, EPS was 45 cents compared with the year-ago quarter’s 53 cents.
Total revenues increased 3.5% year over year to $112.6 million. The top line missed the Zacks Consensus Estimate of $114 million. The increase primarily reflected higher volumes, a change in product mix and the inclusion of online sales platform fees. This was partially offset by an unfavorable year-over-year pricing comparison.
Karat Packaging Inc. Price, Consensus and EPS Surprise
Karat Packaging Inc. price-consensus-eps-surprise-chart | Karat Packaging Inc. Quote
Operational Update
The cost of sales increased 3.5% year over year to $69 million. Gross profit rose 3.7% year over year to $43 million. The gross margin was 38.5%, flat with the year-ago quarter.
The second-quarter gross margin included a net favorable impact of 90 basis points from the inclusion of online platform fees in net sales and production expenses in the cost of goods sold. This was offset by higher ocean freight costs during the quarter.
Operating expenses were $32.3 million compared with $28.5 million in the year-ago quarter. Expenses were higher in the quarter attributed to the inclusion of online sales platform fees, an increase in rent and warehouse expenses, online marketing expenses as well as higher stock compensation expenses. These were partially offset by the inclusion of production expense in cost of goods sold and a decrease in impairment expense and loss on disposal of machinery.
Adjusted EBITDA declined 26% year over year to $15.7 million. The adjusted EBITDA margin was 13.9% compared with 19.4% in the second quarter of 2023.
Cash Position
Karat Packaging reported cash and cash equivalents of $19.3 million as of Jun 30, 2024, down from $23 million as of Dec 31, 2023. The company generated $20 million of cash flow from operations in the first half of 2024 compared with $31 million in the prior-year comparable period.
Guidance For Q3 & 2024
KRT anticipates the year-over-year growth in sales to be in the mid to high-single-digit range for the third quarter. The gross margin is projected between 38% and 39%. The company reported a gross margin of 36.9% in the third quarter of 2023.
For 2024, sales growth is forecast to be in the mid-single digits from the previous year level. The targeted gross margin for the year is between 38% and 40%.
Price Performance
Shares of the company have gained 3.1% year to date compared with the industry’s 9.3% growth.
Image Source: Zacks Investment Research
Zacks Rank
Karat Packaging currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Packaging Stocks
Packaging Corporation of America PKG reported an adjusted EPS of $2.20 in the second quarter of 2024, which beat the Zacks Consensus Estimate of $2.12. The reported figure was higher than the company’s guidance of $2.07. However, the bottom line decreased 5% year over year.
Sales in the second quarter grew 6.3% year over year to $2.08 billion. The top line beat the Zacks Consensus Estimate of $2.03 billion.
Sealed Air Corporation SEE reported second-quarter adjusted EPS of 83 cents, which surpassed the Zacks Consensus Estimate of 64 cents by a margin of 29.7%. The bottom line increased 4% year over year.
Results benefited from the company’s cost take-out to grow program and cost-control initiatives. Improvements in the Food segment’s results helped offset the continued weakness in the Protective segment. This was partially offset by unfavorable price realization.
Total revenues were $1.35 billion, which beat the Zacks Consensus Estimate of $1.31 billion. The figure was down 2.6% from $1.38 billion in the second quarter of 2023.
Graphic Packaging GPK reported quarterly earnings of 60 cents per share, which beat the Zacks Consensus Estimate of 56 cents. The figure declined from earnings of 66 cents per share in the year-ago quarter.
GPK’s revenues were $2.24 billion, which missed the consensus estimate of $2.29 billion. Revenues were down 6.5% from the year-ago quarter’s $2.39 billion.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sealed Air Corporation (SEE) : Free Stock Analysis Report
Karat Packaging Inc. (KRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Karat Packaging (KRT) Stock Dips on Q2 Earnings & Revenue Miss

In trading on Friday, paper & forest products shares were relative laggards, down on the day by about 1.1%. Helping drag down the group were shares of Koppers Holdings, down about 12.5% and shares of Glatfelter down about 0.9% on the day.
Also lagging the market Friday are packaging & containers shares, down on the day by about 0.8% as a group, led down by Pactiv Evergreen, trading lower by about 15.7% and Karat Packaging, trading lower by about 2.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday Sector Laggards: Paper & Forest Products, Packaging & Containers

In recent trading, shares of Karat Packaging Inc (Symbol: KRT) have crossed above the average analyst 12-month target price of $26.67, changing hands for $26.72/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for Karat Packaging Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $24.00. And then on the other side of the spectrum one analyst has a target as high as $30.00. The standard deviation is $3.055.
But the whole reason to look at the average KRT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with KRT crossing above that average target price of $26.67/share, investors in KRT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $26.67 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Karat Packaging Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on KRT — FREE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Karat Packaging Inc.

About

Capitalization

Shares outstanding

Sector

Industry

ISIN

Lot size

CEO

Website