Karat Packaging Inc. (KRT) research, news, and more from GeoInvesting

Company description

Fri, 27 May 2022 02:09:42 GMT

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers. It also provides new product development, design, printing, and logistics services. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.

Research

Fri, 15 Mar 2024 04:00:00 GMT

Karat Packaging Inc. (NASDAQ:KRT) announced Q4 2023 results:

Sales of $95.5 million vs $92.6 million in the prior year and in line with analyst estimates of $95.4 million
Adjusted EPS of $0.24 vs Adj EPS of $0.30 in the prior year and below analyst EPS estimates of $0.41

Full year 2024 sales guidance of 8 to 15% is in line with analyst estimates of full year 2024 sales of $450 million or 10.9% growth.

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Research

Thu, 08 Feb 2024 18:13:03 GMT

Karat Packaging Inc. (NASDAQ:KRT) ($24.79, $494.9 million market cap) announced an increase in its regular quarterly dividend from $0.20 to $0.30.

KRT is one of our buy on pullback model portfolio #11 holdings, up roughly 10% since being added to the portfolio in September.

Research

Mon, 13 Nov 2023 05:00:00 GMT

Karat Packaging Inc. (NASDAQ:KRT) ($18.92, $376.28 million market cap), a specialty distributor and manufacturer of a wide range of disposable foodservice products and related items, and one of our Buy on Pullback Model Portfolio #11 selections. The stock fell on its earnings released Friday, Nov. 9, 2023 based on 4th quarter revenue guidance that came in well under analyst estimates, but the stock is rebounding nicely today, up as much as 14% today , possibly due to the overall low valuation of the stock and analyst maintaining price targets.

Financial Highlights:

Sales and Earnings Highlights:

Quarterly Net Sales: $105.5 million, down 4.1% from the prior year quarter of $110 million, versus analyst estimates of $106.3 million
Net Income: $9.1 million (EPS $0.45), up 48.5% from the prior year quarter of $0.31, versus analyst estimates of $0.44.
Net Income Margin: 8.7%, compared to 5.6% in the prior year quarter??.

Other Financial Highlights:

Gross Profit: $38.9 million, a 14.0% increase from the prior year quarter.
Gross Margin: 36.9%, up from 31.1% in the prior year quarter.
Adjusted EBITDA: $15.2 million, a 29.6% increase from the prior year quarter.
Adjusted EBITDA Margin: 14.4%, compared to 10.7% in the prior year quarter??.

Guidance:

Q4 2023 Net Sales: Expected to increase 2 to 5% from the prior year quarter, substantially less than analyst estimates.
Full Year 2023 Net Sales: Expected to decrease by mid-single digits.
Q4 2023 Gross Margin Goal: Between 36.0% and 38.0%, compared to 32.0% for Q4 2022.
Full Year 2023 Gross Margin Goal: Between 37.5% and 38.5%, versus 31.2% in 2022.
Eco-Friendly Product Sales Objective: 33 to 34% of total 2023 sales, up from 27% in 2022??.

Management Commentary:

Alan Yu, the Chief Executive Officer, highlighted the company's strong performance, with sales volume rising approximately seven percent over the prior year's quarter despite a year-over-year decrease in total revenue due to pricing. He emphasized the growth in margin due to strategic scaling back of U.S. manufacturing operations and reduced ocean freight costs. Yu also noted the increase in sales of eco-friendly products and online channel sales, as well as the operational enhancements from new distribution centers. The board of directors authorized an increase in the quarterly cash dividend to $0.20 per share from $0.10 per share