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

Ranpak (NYSE:PACK) released its quarterly earnings results on Thursday. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.01), FiscalAI reports. Ranpak had a negative net margin of 9.28% and a negative return on equity of 7.00%. The company had revenue of $101.20 million for the quarter, compared to the consensus estimate of $91.59 million.

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 Trading Up 9.9%

PACK traded up $0.51 during midday trading on Friday, reaching $5.60. 1,889,111 shares of the company were exchanged, compared to its average volume of 486,958. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.83 and a quick ratio of 1.47. Ranpak has a one year low of $2.91 and a one year high of $6.31. The stock’s 50-day simple moving average is $4.04 and its 200 day simple moving average is $4.91.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Ranpak

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PACK. Empowered Funds LLC boosted its holdings in Ranpak by 4.2% during the first quarter. Empowered Funds LLC now owns 379,061 shares of the company’s stock worth $2,055,000 after buying an additional 15,184 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Ranpak by 2.9% during the second quarter. Geode Capital Management LLC now owns 1,084,531 shares of the company’s stock worth $3,872,000 after purchasing an additional 30,529 shares in the last quarter. XTX Topco Ltd bought a new position in shares of Ranpak during the second quarter worth $108,000. Gamco Investors INC. ET AL boosted its position in shares of Ranpak by 27.9% during the second quarter. Gamco Investors INC. ET AL now owns 14,000 shares of the company’s stock worth $50,000 after purchasing an additional 3,050 shares in the last quarter. Finally, Sei Investments Co. bought a new position in shares of Ranpak during the second quarter worth $149,000. Institutional investors own 85.94% of the company’s stock.

Ranpak Company Profile

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.