Karat Packaging Full Year 2023 Earnings: EPS Misses Expectations
Karat Packaging (NASDAQ:KRT) Full Year 2023 Results
Key Financial Results
Revenue: US$405.7m (down 4.1% from FY 2022).
Net income: US$32.5m (up 37% from FY 2022).
Profit margin: 8.0% (up from 5.6% in FY 2022). The increase in margin was driven by lower expenses.
EPS: US$1.63 (up from US$1.19 in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Karat Packaging EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.1%.
In the last 12 months, the only revenue segment was Manufacturing and Supply of a Broad Portfolio of Single-Use Products contributing US$405.7m. Notably, cost of sales worth US$252.6m amounted to 62% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$67.0m (56% of total expenses). Explore how KRT's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Trade Distributors industry in the US.
Performance of the American Trade Distributors industry.
The company's shares are down 11% from a week ago.
Risk Analysis
We don't want to rain on the parade too much, but we did also find 1 warning sign for Karat Packaging that you need to be mindful of.
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