Karat Packaging Stock Dips on Q2 Earnings & Revenue Miss Inc., Benzinga, Karat Packaging, Graphic Packaging, Sealed Air Corporation, Zacks Consensus Estimate, Packaging Corporation of America by https://www.benzinga.com/
AI Insights:
Simple Explanation:
the company that makes packages, Karat Packaging, did not make as much money as people thought they would in the second part of the year. So, their shares, or parts of the company that people can buy, went down a little bit. This happened to other companies too, like Packaging Corporation of America and Sealed Air Corporation, but they did better than people thought they would. Read from source...
Critical Perspective:
No
DAN: Karat Packaging Inc. (KRT) shares have fallen by 8.5% after the company reported a lower-than-expected Q2 2024 earnings per share (EPS) and revenue. The quarterly adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents, with EPS declining 29% YoY. Revenue of $112.6m increased 3.5% YoY, however, this missed the Zacks Consensus Estimate of $114m.
Investment Analysis:
We are not financial advisors. It's always essential for you to consult with a financial advisor and do your research before making any decisions about investments.
This article discusses Karat Packaging's recent earnings report and share price decline. The company's adjusted earnings per share of 49 cents missed the Zacks Consensus Estimate of 60 cents and declined 29% year over year. Additionally, total revenues of $112.6 million missed the Zacks Consensus Estimate of $114 million. The decline in share price can be attributed to unfavorable year-over-year pricing comparisons, higher freight costs, and an increase in operating expenses during Q2. Despite the recent decline, the company still has a Zacks Rank of #3 (Hold).