NASDAQ$KRT
Karat Packaging Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Reported significant gross margin expansion and record quarterly operating cash flow.
Karat Packaging Inc. reported a 7.1% increase in net sales, reaching $110.0 million for the third quarter of 2022. The company experienced a 14.7% increase in gross profit, with a gross margin of 31.1%. Net income rose by 51.1% to $6.2 million, and the company achieved a record quarterly operating cash flow of $20.2 million.
- Net sales increased by 7.1% year-over-year to $110.0 million.
- Gross profit increased by 14.7% year-over-year to $34.2 million, with gross margin expanding to 31.1%.
- Net income increased by 51.1% year-over-year to $6.2 million, resulting in a net income margin of 5.6%.
- The company achieved a record quarterly operating cash flow of $20.2 million.
Headline financials
Revenue & EPS history
Karat Packaging · Revenue · Quarterly
$110M
Revenue by segment
Karat Packaging · $86M total across 3 segments · Q3 2022
- Chains and distributors$63.6M+10.9%73.9%
- Online$14M-4.1%16.3%
- Retail$8.44M+7.4%9.8%
Forward guidance
The company anticipates net sales between $95 million and $98 million for the fourth quarter of 2022, compared to $91.3 million in the fourth quarter of 2021. The gross margin goal for the full year 2022 is 31% to 32% on average.
Tailwinds
- Net sales for the 2022 fourth quarter expected to be between $95 million and $98 million.
- Eco-friendly products grew 26.7 percent during the quarter.
- Gross margin improvement is expected to continue into the fourth quarter.
- Ocean freight rates significantly decreased toward the end of the third quarter.
- New initiatives are in place to significantly grow online sales.
Headwinds
- Net sales for the third quarter were impacted by customers' destocking of certain inventory due to supply chain recovery.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2022
-0.7%
Avg return
Earnings day
+1.2%
Avg return
5 days after
+0.8%
Avg return
30 days after
42%
10 / 24 earnings
Positive
+20.7%
Q4 2025
Best reaction
-18.6%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -7.5% | -10.4% | -6.3% | |
| Q4 2025 | +20.7% | +24.4% | +33.5% | |
| Q3 2025 | -6.1% | -8.5% | -8.5% | |
| Q1 2025 | +10.9% | +10.0% | +14.2% | |
| Q4 2024 | -2.1% | +0.8% | -14.7% | |
| Q3 2024 | -0.1% | +3.5% | +5.3% | |
| Q2 2024 | -14.6% | -7.8% | -13.2% | |
| Q1 2024 | -9.0% | -5.2% | -7.7% | |
| Q4 2023 | -11.8% | -7.2% | -5.7% | |
| Q3 2023 | -18.6% | -9.2% | -5.5% | |
| Q2 2023 | +3.8% | +21.6% | +0.8% | |
| Q1 2023 | +3.6% | +6.2% | +12.5% | |
| Q4 2022 | -1.6% | -6.6% | -6.2% | |
| Q3 2022 | -2.8% | -7.6% | -5.8% | |
| Q2 2022 | +1.2% | +0.1% | +1.2% | |
| Q1 2022 | +11.6% | +16.7% | +10.0% | |
| Q4 2021 | +13.3% | +26.2% | +24.5% | |
| Q3 2020 | -10.6% | -10.8% | -9.7% | |
| Q3 2021 | -7.5% | -7.8% | -7.6% | |
| Q2 2020 | -3.7% | -6.5% | -6.1% | |
| Q2 2021 | -2.6% | -7.6% | -6.2% | |
| Q4 2020 | +6.1% | +3.7% | +6.2% | |
| Q1 2020 | +6.1% | +3.7% | +6.2% | |
| Q1 2021 | +3.5% | +8.2% | +8.2% | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — | |
| Q4 2018 | — | — | — | |
| Q2 2018 | — | — | — | |
| Q1 2018 | — | — | — | |
| Q4 2017 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro