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The Zacks Consensus Estimate for KRT’s third-quarter revenues is pegged at $107 million, suggesting a 3% dip from the year-ago quarter's reported figure. The consensus mark for earnings per share is 44 cents, indicating year-over-year growth of 33%. The estimate has been unchanged in the past 30 days.
Q2 Performance
In the last reported quarter, Karat Packaging delivered a year-over-year improvement in adjusted earnings per share despite reporting lower revenues. While the top line met the Zacks Consensus Estimate, earnings beat the same.
KRT’s earnings have surpassed the consensus estimate in three of the last four trailing quarters, while falling short in one quarter, delivering an earnings surprise of 48.8%, on average.
Karat Packaging’s sales in the third quarter are expected to be down year over year. This is mainly due to the implementation delays by new chain accounts and in opening new warehouses. Lower revenues from logistics services and shipping fees are also likely to have been a drag. The company has been proactively passing on savings from ocean freight and raw material costs to customers, which is also expected to have impacted its revenues in the third quarter.
Nevertheless, sales of core products are expected to have been strong during the quarter and reflect on its volumes. The company has been witnessing solid demand for its eco-friendly products.
Despite lower expected revenues, Karat Packaging’s margins in the quarter under review are likely to have benefited from its ongoing strategic initiatives, which include reducing the manufacturing footprint in certain locations, increasing import items and improving inventory management and fill rates.
Also, a decline in ocean freight costs is expected to have aided margins. Operating expenses are likely to have been elevated, reflecting workforce expansion, higher marketing expenses to support online sales growth and higher rental expenses from the additional leased warehouses. This is expected to have negated some of these gains.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Karat Packaging this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for KRT is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Price Performance
Karat Packaging’s shares have gained 43.1% over the past year compared with the industry’s 1.5% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , scheduled to release third-quarter earnings on Dec 6, presently has an Earnings ESP of +3.75% and a Zacks Rank of 2.
The Zacks Consensus Estimate for OLLI’s third-quarter earnings is pegged at 43 cents per share. The estimates for the company’s quarterly earnings have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 1.3%.
Danimer Scientific (DNMR - Free Report) , scheduled to release third-quarter 2023 earnings on Nov 14, currently has an Earnings ESP of +2.94% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Danimer Scientific’s third-quarter earnings is currently at a loss of 34 cents per share. The loss has narrowed from the prior estimate of a loss of 35 cents per share projected 60 days ago.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +5.32% and a Zacks Rank of 3 at present.
The consensus estimate for Kinross Gold’s earnings for the third quarter is pegged at 10 cents per share. Earnings estimates have moved north by 11% in the past 60 days. It has an average trailing four-quarter earnings surprise of 31.7%.
Image: Bigstock
Karat Packaging (KRT) to Report Q3 Earnings: What's in the Cards?
Karat Packaging (KRT - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 9, after market close.
Q3 Estimates
The Zacks Consensus Estimate for KRT’s third-quarter revenues is pegged at $107 million, suggesting a 3% dip from the year-ago quarter's reported figure. The consensus mark for earnings per share is 44 cents, indicating year-over-year growth of 33%. The estimate has been unchanged in the past 30 days.
Q2 Performance
In the last reported quarter, Karat Packaging delivered a year-over-year improvement in adjusted earnings per share despite reporting lower revenues. While the top line met the Zacks Consensus Estimate, earnings beat the same.
KRT’s earnings have surpassed the consensus estimate in three of the last four trailing quarters, while falling short in one quarter, delivering an earnings surprise of 48.8%, on average.
Karat Packaging Inc. Price and EPS Surprise
Karat Packaging Inc. price-eps-surprise | Karat Packaging Inc. Quote
Key Factors to Note
Karat Packaging’s sales in the third quarter are expected to be down year over year. This is mainly due to the implementation delays by new chain accounts and in opening new warehouses. Lower revenues from logistics services and shipping fees are also likely to have been a drag. The company has been proactively passing on savings from ocean freight and raw material costs to customers, which is also expected to have impacted its revenues in the third quarter.
Nevertheless, sales of core products are expected to have been strong during the quarter and reflect on its volumes. The company has been witnessing solid demand for its eco-friendly products.
Despite lower expected revenues, Karat Packaging’s margins in the quarter under review are likely to have benefited from its ongoing strategic initiatives, which include reducing the manufacturing footprint in certain locations, increasing import items and improving inventory management and fill rates.
Also, a decline in ocean freight costs is expected to have aided margins. Operating expenses are likely to have been elevated, reflecting workforce expansion, higher marketing expenses to support online sales growth and higher rental expenses from the additional leased warehouses. This is expected to have negated some of these gains.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Karat Packaging this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for KRT is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Price Performance
Karat Packaging’s shares have gained 43.1% over the past year compared with the industry’s 1.5% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , scheduled to release third-quarter earnings on Dec 6, presently has an Earnings ESP of +3.75% and a Zacks Rank of 2.
The Zacks Consensus Estimate for OLLI’s third-quarter earnings is pegged at 43 cents per share. The estimates for the company’s quarterly earnings have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 1.3%.
Danimer Scientific (DNMR - Free Report) , scheduled to release third-quarter 2023 earnings on Nov 14, currently has an Earnings ESP of +2.94% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Danimer Scientific’s third-quarter earnings is currently at a loss of 34 cents per share. The loss has narrowed from the prior estimate of a loss of 35 cents per share projected 60 days ago.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +5.32% and a Zacks Rank of 3 at present.
The consensus estimate for Kinross Gold’s earnings for the third quarter is pegged at 10 cents per share. Earnings estimates have moved north by 11% in the past 60 days. It has an average trailing four-quarter earnings surprise of 31.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.