Shares of Karat Packaging, Inc. (NASDAQ: KRT) have lost 8.5% since the company reported lower-than-expected second-quarter 2024 revenues and earnings per share on Aug 8, 2024. The quarterly adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents and declined 29% year over year. The downfall was due to unfavorable year-over-year pricing comparison, higher freight costs and an increase in operating expenses in the quarter.
Including one-time items, EPS was 45 cents compared with the year-ago quarter's 53 cents.
Total revenues increased 3.5% year over year to $112.6 million. The top line missed the Zacks Consensus Estimate of $114 million. The increase primarily reflected higher volumes, a change in product mix and the inclusion of online sales platform fees. This was partially offset by an unfavorable year-over-year pricing comparison.
Karat Packaging Inc. Price, Consensus and EPS Surprise
Karat Packaging Inc. price-consensus-eps-surprise-chart | Karat Packaging Inc. Quote
Operational Update
The cost of sales increased 3.5% year over year to $69 million. Gross profit rose 3.7% year over year to $43 million. The gross margin was 38.5%, flat with the year-ago quarter.
The second-quarter gross margin included a net favorable impact of 90 basis points from the inclusion of online platform fees in net sales and production ...
