Karat Packaging's Q3 EPS misses estimates

Reuters11-07
<a href="https://laohu8.com/S/KRT">Karat Packaging</a>'s Q3 EPS misses estimates

Overview

  • Karat Packaging Q3 net sales slightly beat analyst expectations, reaching $124.5 mln

  • Adjusted EPS for Q3 missed analyst expectations

Outlook

  • Company expects Q4 2025 net sales to rise 10-14% from prior-year quarter

  • Karat anticipates Q4 2025 gross margin between 33-35%

  • Company maintains full-year guidance on net sales, gross margin, and adjusted EBITDA margin

Result Drivers

  • VOLUME GROWTH - Co attributes Q3 sales increase to strong volume growth and favorable product mix

  • TARIFF IMPACT - Higher import costs due to increased tariffs affected gross margin, per CEO Alan Yu

  • NEW BUSINESS SEGMENT - Expansion into paper bags projected to add $20 mln in annual revenue

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Beat*

$124.50 mln

$124.09 mln (3 Analysts)

Q3 Adjusted EPS

Miss

$0.37

$0.39 (2 Analysts)

Q3 Net Income

$7.60 mln

Q3 Adjusted EBITDA

Slight Beat*

$13.10 mln

$13.01 mln (3 Analysts)

Q3 Gross Margin

34.50%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

  • Wall Street's median 12-month price target for Karat Packaging Inc is $33.00, about 23.2% above its November 5 closing price of $25.36

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX2QLjN2

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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