Karat Packaging Q4 sales beat estimates

Karat Packaging

12/03/2026 20:49

Overview

US disposable foodservice supplier's Q4 net sales rose 13.7%, beating analyst expectations

Q4 adjusted EBITDA beat analyst expectations; gross margin fell due to higher tariffs

Company repurchased $3 mln in shares during Q4

Outlook

Karat expects Q1 2026 net sales to rise 8-10% from prior-year qtr

Company sees Q1 2026 gross margin between 34% and 36%

Karat expects margin tailwinds in Q2 2026 from tariff and currency stabilization

Result Drivers

VOLUME AND PRICING - Double-digit volume growth and a positive pricing shift drove Q4 net sales higher, per CEO Alan Yu

TARIFFS PRESSURE - Higher tariffs and duty costs reduced gross margin, partially offset by more favorable vendor pricing and lower logistics expense

Company press release: ID:nGNX89qqlQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$115.60 mln
$113.95 mln (3 Analysts)
Q4 Adjusted EPS
Beat
$0.34
$0.28 (2 Analysts)
Q4 Net Income
$7.2 mln
Q4 Adjusted EBITDA
Beat
$12.5 mln
$10.40 mln (3 Analysts)
Q4 Gross Margin
34.00%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "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 $28.50, about 24.9% above its March 11 closing price of $22.82

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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