Winners And Losers Of Q4: Karat Packaging (NASDAQ:KRT) Vs The Rest Of The Specialty Equipment Distributors Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Karat Packaging (NASDAQ:KRT) and its peers.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 9 specialty equipment distributors stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
While some specialty equipment distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.
Karat Packaging (NASDAQ:KRT)
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Karat Packaging reported revenues of $101.6 million, up 6.3% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“We finished 2024 with a strong fourth quarter, as sales volume grew 14 percent and net sales increased 6 percent, despite the out-of-period benefit of $4.8 million included in the prior-year quarter from online platform fees for the first nine months of 2023,” said Alan Yu, Chief Executive Officer.
Karat Packaging Total Revenue
The stock is down 3% since reporting and currently trades at $27.89.
Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
United Rentals reported revenues of $4.10 billion, up 9.8% year on year, outperforming analysts’ expectations by 3.9%. The business had a strong quarter with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.
United Rentals Total Revenue
United Rentals delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14% since reporting. It currently trades at $651.89.
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $49.49 million, up 12.1% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 16.5% since the results and currently trades at $12.28.
Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Alta reported revenues of $498.1 million, down 4.5% year on year. This result surpassed analysts’ expectations by 2.6%. More broadly, it was a slower quarter as it recorded and a significant miss of analysts’ adjusted operating income estimates.
The stock is down 5.6% since reporting and currently trades at $4.81.
Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $34.64 million, down 22.8% year on year. This number lagged analysts' expectations by 8.7%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ EPS estimates.
Hudson Technologies had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 11.4% since reporting and currently trades at $6.24.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
