Analysts Estimate Karat Packing (KRT) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Karat Packing (KRT) despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Karat Packing is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decrease of 17% [3]. - Revenues are projected to reach $124 million, which is a 10% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Karat Packing is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.30%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but it is more reliable for positive readings [9][10]. - Karat Packing's current Zacks Rank is 2 (Buy), but the negative Earnings ESP complicates predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Karat Packing was expected to earn $0.60 per share but only achieved $0.57, resulting in a surprise of -5.00% [13]. - Over the last four quarters, the company has only surpassed consensus EPS estimates once [14]. Industry Context - Greif (GEF), a competitor in the Zacks Containers - Paper and Packaging industry, is expected to report earnings of $0.61 per share, indicating a significant year-over-year decline of 46% [18]. - Greif's revenues are projected to be $687.24 million, down 51.5% from the previous year, with a negative Earnings ESP of -2.06% and a Zacks Rank of 4 (Sell) [19][20].