Ranpak (NYSE:PACK) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

by · The Cerbat Gem

Ranpak (NYSE:PACK – Get Free Report) announced its earnings results on Thursday. The company reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.01), FiscalAI reports. The company had revenue of $101.20 million during the quarter, compared to the consensus estimate of $91.59 million. Ranpak had a negative return on equity of 7.11% and a negative net margin of 9.70%.

Here are the key takeaways from Ranpak’s conference call:

  • Automation momentum is the standout — automation revenue grew ~111% YoY on a constant currency basis, the company expects about $60M in automation revenue this year and is confident it can surpass $100M in the near term, with automation also driving PPS cross-sell.
  • Europe outperformed expectations with PPS volume growth and stronger sales execution after organizational changes, and Ranpak sees a timely resin-to-paper switching opportunity as resin costs and availability tighten.
  • Volatile European energy and higher paper input costs prompted a temporary surcharge to protect margins, which management warns could cause a slight margin headwind in Q2 until the surcharge and pricing actions take hold.
  • Margin and cost improvement initiatives are taking hold — gross margin improved ~210 basis points (ex-warrants/depreciation), Adjusted EBITDA was flat in constant currency but up excluding warrants, and Lean Six Sigma and sourcing efforts are expected to drive further efficiencies.
  • Liquidity and deleveraging path remain priorities — $48.5M cash, no revolver draws, reported net leverage 4.7x LTM, a 24-month target of 2.5–3.0x leverage, disciplined CapEx, and a targeted FCF profile (~$15M) to support debt reduction.

Ranpak Price Performance

PACK traded up $1.12 on Thursday, hitting $5.06. 2,869,897 shares of the company’s stock traded hands, compared to its average volume of 360,542. The company’s 50 day simple moving average is $4.04 and its 200-day simple moving average is $4.91. The company has a current ratio of 1.83, a quick ratio of 1.47 and a debt-to-equity ratio of 0.74. Ranpak has a one year low of $2.91 and a one year high of $6.31. The firm has a market cap of $428.26 million, a price-to-earnings ratio of -11.23 and a beta of 2.88.

Analysts Set New Price Targets

A number of analysts have commented on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Ranpak in a research report on Tuesday, April 21st. Craig Hallum cut their price objective on Ranpak from $10.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, March 6th. Cantor Fitzgerald reissued an “overweight” rating on shares of Ranpak in a report on Friday, March 6th. Wall Street Zen downgraded shares of Ranpak from a “hold” rating to a “sell” rating in a report on Sunday, April 12th. Finally, UBS Group reiterated an “overweight” rating on shares of Ranpak in a research report on Friday, March 6th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Ranpak presently has an average rating of “Hold” and a consensus price target of $6.83.

Read Our Latest Stock Report on PACK

Institutional Investors Weigh In On Ranpak

Several institutional investors and hedge funds have recently modified their holdings of the stock. Corient Private Wealth LLC bought a new stake in shares of Ranpak during the fourth quarter valued at approximately $59,000. Empowered Funds LLC grew its stake in Ranpak by 6.0% during the fourth quarter. Empowered Funds LLC now owns 498,623 shares of the company’s stock valued at $2,698,000 after acquiring an additional 28,056 shares in the last quarter. nVerses Capital LLC bought a new stake in Ranpak in the 4th quarter valued at $58,000. Numerai GP LLC bought a new stake in Ranpak in the 4th quarter valued at $62,000. Finally, Millennium Management LLC lifted its stake in Ranpak by 32.9% in the 4th quarter. Millennium Management LLC now owns 1,588,253 shares of the company’s stock worth $8,592,000 after purchasing an additional 393,344 shares in the last quarter. Institutional investors own 85.94% of the company’s stock.

Ranpak Company Profile

(Get Free Report)

Ranpak Holdings Corp. (NYSE: PACK) is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company’s core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak’s solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail.

Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability.

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