Karat Packaging Inc. (KRT) saw its stock price plummet 6.47% in pre-market trading on Friday following the release of its second-quarter earnings report. The company's results fell short of analyst expectations, triggering a sell-off among investors.
For the quarter ended June 30, Karat Packaging reported adjusted earnings of 57 cents per share, falling short of the mean expectation of 60 cents per share from two analysts. While this represents an increase from the 49 cents per share reported in the same quarter last year, it wasn't enough to meet market expectations. Revenue for the quarter rose 10.1% to $123.99 million, slightly above the analysts' forecast of $123.50 million.
Despite the earnings miss, Karat Packaging's performance shows some positive signs. The company reported a quarterly net income of $10.93 million, and its revenue growth demonstrates continued expansion. However, the stock has been under pressure, having fallen 4.3% this quarter and lost 10.9% year-to-date. Analysts maintain a generally positive outlook, with the current average rating on the shares being "buy" and a median 12-month price target of $35.00, representing a potential 23.6% upside from its last closing price of $26.74.
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