Karat Packaging Misses Q4 Estimates, Shares Rise 5.3%

Karat Packaging reported a fourth-quarter earnings per share (EPS) of $0.29, falling short of the Zacks Consensus Estimate of $0.37 and reflecting an 18.7% miss. The company generated revenues of $101.65 million, slightly below expectations, although this figure marked a 6.3% year-over-year increase. CEO Alan Yu highlighted a 14% growth in sales volume, despite previous benefits from online platform fees affecting year-over-year comparisons. Looking ahead, Karat expects first-quarter revenues to align closely with analyst estimates at approximately $102.3 million. The company is also focused on enhancing supply chain resilience and reducing dependence on Chinese imports, while continuing to develop eco-friendly product lines that are gaining traction. Despite recent challenges, Karat Packaging has maintained a strong growth trajectory over the past five years, with a compounded annual growth rate of 13.4%.